Stockholm - AFP
Swedish fashion giant H&M announced a sharp rise in profits Tuesday as the company continues to expand with new outlets and online sales services.
The group's net profits surged by 36 percent to 3.61 billion kronor ($425 million, 388 million euros) in the first quarter (December to February) on the back of a 25 percent growth in sales to 40.28 billion kroner.
"We have made a very good start to 2015," chief executive Karl-Johan Persson said in a statement, adding that the growth was partly due to "strong expansion both through stores and online".
During the spring, H&M plans to expand its online retailing service with eight more websites targeting Europe.
"It is very important to always be able to meet customers’ shopping demands and expectations in the fast digitalising development that is taking place in the retail market," said Persson.
The company also plans 400 new outlets, mainly in Asia and South America and said it was confident that sales will remain strong despite pressure from a strong dollar.
"Although the strong US dollar will affect our sourcing costs... we will make sure that we always have the best customer offering in each individual market," said Persson.