H&M to create 7000 new jobs

Swedish clothing store H&M has revealed plans to create between 6,000 and 7,000 new jobs in 2009.

Fourth-quarter profits at H&M were ahead of analysts' expectations. It reported a 14% rise in pre-tax profits to 7.11bn Swedish crowns ($891m; £623m). Annual profits were up 11% at SEK 21.19bn at the world's third-largest clothing retailer. However a fall in consumer spending affected December's figures. Sales were up 3%, behind forecasts of a rise of 8.6%. The company expects sales in January to increase by 8%.

Known for its fast fashion approach to retail, the company, said growth and development opportunities were positive and it expected to create between 6,000 and 7,000 jobs in the current year.

"The figures in general were better than expected," Anders Wiklund, analyst at Evli bank, told AFP: "I think they will (do) quite well because the low price strategy will benefit them. People who ... have been shopping in more expensive stores will move down to H&M'stores," Wiklund said, adding, however, that the first quarter of this year "could be quite tough."