H&M reports $12.9bn sales in H1 2018. Credit: Hennes & Mauritz.

Swedish clothing retailer Hennes & Mauritz (H&M) has reported the group’s sales including VAT amounted to $12.9bn during the first half (H1) ending 31 May.

The company recorded a $680m profit after taxes for the first half of this year, corresponding to $0.41 a share, with a profit after financial items of $822.99m.

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H&M CEO Karl-Johan Persson said: “As we signalled previously, it was going to be a tough first half-year. We went into the second quarter carrying too much stock and we still had some imbalances in the H&M assortment, something that we are gradually correcting.

“We are transitioning our logistics systems to make our supply chain even faster, more flexible and more efficient.”

“As part of our transformation work, we are transitioning our logistics systems to make our supply chain even faster, more flexible and more efficient.

“These transitions are complicated and can result in temporary interruptions, as unfortunately occurred during the second quarter in some of our major sales markets. This negatively impacted sales in the US, France, Italy and Belgium, as well as online sales in the Nordic region.”

In addition, the company reported a 2% slight increase in the group’s sales to $6.83bn for the second quarter (Q2), compared to same period last year.

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The group noted that sales and profits were temporarily affected by interruptions in connection with some transitions carried in the US, France, Italy and Belgium during the second quarter.

Persson added: “We have a long-term approach and are optimistic about the future for the whole of the H&M group, with good growth in both sales and profitability for many years to come.”

The company plans to open around 390 stores this year, as well as close 150 branches.