Despite a softening profits, Swedish apparel giant Hennes & Mauritz is optimistic about future market growth as it plans to open a raft of stores worldwide in the coming year.

Better known as H&M, the chain plans to open 275 new stores in Latvia, Bulgaria, Thailand and Malaysia. It will also make first foray in Latin America with first store planned to be open in Mexico.

The retailer said its net profit in September to November dipped 2.4 per cent to US$790 million, however, a 13 per cent sales boom in December has encouraged a more optimistic outlook for the company. 

CEO Karl-Johan Persson said: “We have a strong belief in our offering and are convinced that H&M will continue to maintain its strong position as the year goes on.”

Meanwhile, H&M is now reported by Indian news sources to be looking to enter India after the government moved to allow 100 per cent foreign direct investment in single brand retail.

However the company is understood to remain concerned by a clause which requires foreign retailers to source at least 30 per cent of their products from local SMEs.

“India is one of the many interesting markets for H & M, but we have yet to decide if, and in that case when, we would open stores there,” said Hacan Andersson, H&M’s press officer.

H&M currently has about 2500 stores in 43 countries. Collaborations include fashion icons and international designers such as Madonna, Stella McCartney, David Beckham and Karl Lagerfeld. H&M is also the umbrella of brands Weekday, COS, Cheap Monday and Monki.

GB