H&M Sees Muted Growth Ahead After Profit Beat Expectations

Swedish fast-fashion retailer Hennes & Mauritz AB signaled that growth is set to slow after tight cost controls and upgraded collections helped it beat profit expectations for a third consecutive quarter.

Operating profit in the fiscal fourth quarter ended November of 6.36 billion kronor ($723.2 million) exceeded the 5.5 billion kronor analysts had expected. Net sales fell shy of expectations, but the retailer achieved its long-held goal of hitting an operating profit margin of over 10%.