U.S. News

H&M Says It Can Maintain Gross Profit Margin


Global fashion chain Hennes & Mauritz sees room to boost its efficiency and is likely to maintain the gross profit margin achieved in its last quarter, its chief executive said on Wednesday.

H&M posted a gross profit margin of 58.9% for its first financial quarter ended in February.

"We can still increase efficiency, all things being equal... I cannot see that we will not be able to keep the level that we have currently," Rolf Eriksen said in an interview.

H&M will open its first mainland China store in Shanghai on Thursday. Spanish arch-rival Inditex operates three Zara stores in the city, while U.S. rival Gap has yet to set up shop in the country.