H&M profits were down 12% in the first quarter of 2009, as a result of currency fluctuations. Actual revenues increased for the Swedish company Hennes & Mauritz, which plans on expanding its presence in the U.S. over the long term.
Sweden's Hennes & Mauritz on Thursday said currency effects resulted in a decline in first-quarter profits even as revenues rose, driven by store openings and robust business in Asia.
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H&M has been opening aggressively in the United States, where it now operates 169 stores. Sales in America dropped 1 percent in the quarter.
[H&M investor relations manager Nils] Vinge said the U.S. retail environment "was challenging" for H&M with weak sales due to the business climate there. He said H&M still remained committed to opening stores in America and that it viewed the market as holding great potential.
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Vinge said H&M signed a deal to open its first stores in Florida later this year. Considering the environment, he said H&M had skewed the majority of its openings this year to the second half in hopes market conditions will improve.
China, where H&M now has 13 stores, continued to see brisk business, with sales increasing 21 percent in local currencies. Vinge said H&M would open its first stores in Beijing later this year.
Vinge said that the company opened two stores in Moscow this month and will continue to expand in Russia. Its first store in South Korea will open next year and then it's heading to Jordan.
H&M profits were 
