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H&M profit threatened by rising costs


H&M profit threatened by rising costs


Swedish fashion giant Hennes & Mauritz has posted third-quarter pretax profits that was just below expectations and warned that rising costs were affecting into profit margins.

The world’s third biggest clothing retailer boosted profit by 20 percent thanks to sales campaigns and its wide geographical spread, but fashion industry experts expressed concern that H&M is finding it harder than its rivals to raise prices.

Analysts said the margin suggested H&M was cutting prices at a time when others were raising them to offset higher costs.

H&M’s results contrasted with a more positive report last week from top clothing group Inditex.

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