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H&M pretax profit falls to USD997.2 million

By FashionUnited

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H&M´s pretax profit veiled an otherwise good week for the

international fashion market. The second largest fashion retailer revealed decreasing profit for 5th consecutive quarter, dragging analysts to suggest a cut on their forecast on the stock for first time since H&M started trading.

H&M's pretax profit fell for the fifth straight quarter to 6.8 billion crowns (USD997.2 million) in the September-November period, down from 7.2 billion a year earlier.

The gross margin shrank to 61.9 percent from a year-earlier 63.2 percent against a forecast for 62.5 percent.

Net income slipped 2.4 percent to 5.36 billion kronor (USD797 million) in the three months ended Nov. 30, Stockholm-based H&M said in a statement Thursday. The average estimate was 5.37 billion kronor, according to a Bloomberg survey of 14 analysts.

However, the Swedish group kept its dividend at 9.50 crowns. Nevertheless, some analysts had forecast a cut for the first time in its history, reported Reuters.
H&M