H&M's net profit doubles in first quarter

H&M said Wednesday its net profit more than doubled in the first quarter as the world's second biggest fashion retailer worked to control costs.

The Swedish company reported a profit-after-tax of 1.2 billion kronor ($113.3 million) in the December-to-February period.

"Through continued cost control, better precision in our collections and close cooperation with our suppliers, we now stand better equipped," chief executive Daniel Erver said in a results statement.

"We are fully focused on driving profitable growth going forward," Erver said.

The group's operating profit nearly tripled to 2.1 billion kronor, well above the 1.3 billion kronor forecast by analysts in a Bloomberg survey.

Sales fell by two percent to 53.7 billion kronor, but H&M said they "gradually improved" in February and rose in the first weeks of March.

Erver took over earlier this year from Helen Helmersson, who stepped down after four years at the helm.

H&M, the second biggest fashion retailer after Zara owner Inditex, posted lower-than-expected results in 2023.

"We continue to plan our business with respect for a challenging situation in the world around us where consumers remain affected by inflation and high interest rates," Erver said.

"Our top priority is to strengthen sales, and our target of a 10 percent operating margin for full-year 2024 thus remains in place," he said.