H&M Profit Drop Beats Estimates As Margin Damage C

September 29, 2011, 7:57 AM EDT inShare E-mailPrint MORE FROM BUSINESSWEEK Volvo commemorate BPs Svanberg as chairman to Replace Schweitzer S&P Places 15 Euro Nations on admonition for Credit Downgrade Euro Leaders fiscal Union Pact Leaves adjoining Step to ECB europiuman CEOs hold come out Cash to Germany In grammatical case of Euro Breakup EU Leaders contend Demands for Investor Write-Offs in Bailouts By Ar more(prenominal)l Kenna (Updates with psycho analysts comment in sixth paragraph, CEO recite in 11th.) Sept. 29 (Bloomberg) -- Hennes & Mauritz AB, europiums second-largest clothing retailer, report a drop in third- quarter earnings that amaze analysts estimates as the company contained the timber of high like wrongs and proceeds in Asia. Operating profit fell 17 per centum to 4.71 one thousand million kronor ($700 million) in the terzetto months finish Aug. 31, capital of Sweden- based H&M verbalise right apart in a statement. The total of 17 analyst estimates compiled by Bloomberg was 4.35 billion kronor. The gross coast narrowed to 58.6 per centum from 60.5 part a year earlier, beating the 57.8 percent average estimate. H&M shares rose to the highest in more than a month. In asset to a near doubling in the price of cotton last year, the retailer has overly had to contend with high boil expenses in Asia, where it gets about 75 percent of its clothes.

succeeding(a) earnings whitethorn benefit from a 54 percent decline in cotton prices since they surged to a playscript in March. Gross mete is a relief, Jan Meijer, an analyst at ING technical Banking in Amsterdam, said in an e-mail. The market was worry that H&M margins would be impacted heavily by higher cotton prices and payoff in Asia. H&M gained as much as 5.7 percent in Stockholm job and was up 9.2 kronor, or 4.7 percent, at 205 kronor as of 1 p.m. higher(prenominal) Inventory The third quarter could make been a lot decline from an input be perspective, habituated higher cotton cost still filtering through to the company, Societe Generale analyst Anne Critchlow said in an...If you wish to get a in force(p) essay, order it on our website: Ordercustompaper.com

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