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STOCKHOLM, March 26 (Reuters) – Swedish fashion retailer H&M reported on Thursday a slightly bigger rise than expected in December-February \u200coperating profit, and predicted March sales would be up 1% \u200cin local currencies.<\/p>\n
“Towards the end of the quarter our well-received spring collections contributed to \u200ba positive sales trend, which also continued into March,” CEO Daniel Erver said in a statement.<\/p>\n
Operating profit in H&M’s fiscal first quarter, which includes the key Christmas shopping period, rose for a third consecutive \u200cquarter to 1.51 billion \u2060crowns ($162 million) from a year-earlier 1.20 billion and a mean forecast in an LSEG poll of analysts of \u20601.39 billion, on an organic sales decrease of 1%.<\/p>\n
The rival to Inditex in January flagged that local-currency sales in the first two months \u200bof the \u200bquarter were down 2%.<\/p>\n
H&M said it \u200bis closely monitoring developments in \u200cthe Middle East and the implications for global trade.<\/p>\n
“With good flexibility in the supply chain and a low proportion of air freight, there are opportunities to adapt the flow of goods to changed conditions,” it said. “Middle Eastern markets account for a small portion of \u200cthe company\u2019s total sales and the markets \u200bare operated through franchise partners.”<\/p>\n
On February \u200b28, the United States and \u200bIsrael launched coordinated strikes against Iran. Iran has \u200cin response launched strikes against Israel, \u200bU.S. bases and \u200bGulf states.<\/p>\n
It has attacked vessels and infrastructure throughout the Gulf region and effectively closed the Strait of Hormuz, hitting global supply \u200bchains and causing \u200csoaring energy costs, raising concern over war-driven inflation and potential \u200bimpact on consumer demand.<\/p>\n
($1 = 9.3424 Swedish crowns)<\/p>\n
(Reporting by Greta \u200bRosen Fondahn, editing by Anna Ringstrom)<\/p>\n<\/p><\/div>\n