Jump in H&M sales boosts profits

H&M is weathering the recession better than some of its rivals

Swedish retailer H&M has reported a rise in profits for the second quarter, driven by higher sales.

Net profit totalled 4.19bn Swedish crowns ($532m; £324m) for the three months to 31 May, up from 3.93bn crowns in the same period last year.

Sales rose 23% to 26.6bn crowns as H&M, which makes its purchases in US dollars, benefited from the decline in the currency so far this year.

The company opened 93 stores and closed 9 stores, taking its total to 1,822.

H&M has about 100 stores in the UK and also operates the COS fashion chain.

Its "fast fashion" offering of low-price catwalk looks has allowed it to weather the recession better than some of their rivals.

The company plans to debut a line of shoes and bags in partnership with luxury shoemaker Jimmy Choo in November.

It has previously collaborated with fashion designers Karl Lagerfeld and Stella McCartney and stars such as Madonna.

But rival Zara, owned by Spain's Inditex, earlier this month reported a drop in profit for its fiscal second quarter.