#8- H&M Profit falls 12%

Revenue at H&M, the world's third-largest clothing retailer by sales after U.S. fashion group Gap Inc. and Spain's Inditex SA, rose 18%, but the increase reflected opening of new stores. Sales at stores open at least one year have been falling for months. H&M said, "sales were affected by a continued restrained consumption due to the current recession." H&M gross margin fell to 56.8% from 59.6% and operating profit fell 11%. In February, total sales at the fashion retailer rose 1% from a year earlier, while sales from stores open longer than a year fell 8%. Analysts had expected total sales to rise 3% and same-store sales to fall 7%. It was H&M's seventh consecutive month of falling same-store sales. The company wants to work towards increasing sales within the next year, and they also want to stick to their goal of opening 225 more stores before next year.


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