Swedish fashion retailer H&M reported on Thursday a slight increase in net profit for the second quarter, even as net sales remained weak.
Regarding the current trading, H&M Group said its sales in local currencies in June are expected to be on par with the same period last year.
In Stockholm, the shares were losing around 4.56%, trading at around 161 Swedish kronor ($16.56) in morning trading.
In the second quarter, net profit attributable to shareholders edged up to 3.986 billion kronor from 3.977 billion kronor last year. Earnings per share were 2.49 kronor, higher than 2.48 kronor a year ago.
Operating profit amounted to 5.913 billion kronor, compared to 5.914 billion kronor last year. Operating margin grew to 10.8% from the prior year's 10.4%.
The latest results included one-time costs of 679 million kronor.
Adjusted operating profit increased 11% year-over-year to 6.59 billion kronor, corresponding to a margin of 12.0%, higher than 10.4% a year ago.
Net sales amounted to 54.83 billion kronor, down from 56.71 billion kronor last year.
Sales in local currencies were fairly in line with last year, with around 3% fewer stores at the end of the quarter compared with the same point in time last year.
