Swedish fashion retailer Hennes & Mauritz has said on Wednesday that despite the fact that its first-quarter sales grew to $5.4 billion, quarterly net profit dropped to 3.3 billion Swedish kronor ($405,500) from 4.7 billion kronor a year earlier.
The company has said that despite the drop, it is continuing to expand its business, both in the brick-and-mortar category as well as online.
CEO Karl-Johan Persson was quoted by Associated Press as saying on Wednesday that profits were affected by “a continued very negative US dollar” and by increased markdowns.
The group which includes brands like COS, Monki, Weekday, & Other Stories and Cheap Monday, said it plans around 425 new stores in existing markets this year, adding its store number 4,000 opens in April in New Delhi.
According to the Associated Press, by December 2016, H&M will have extra 11 online markets, meaning the Stockholm-based group will have 34 in all.