H&M sees net profit slip in 2011, upbeat on 2012

Swedish cheap-and-chic fashion giant H&M on Thursday posted a 2011 net profit down 15 percent from a year earlier amid higher cotton prices, but expressed optimism for 2012 despite the difficult economic climate.
For the full-year 2011, H&M posted a net profit of 15.82 billion kronor (1.79 billion euros, $2.33 billion), down from 18.68 billion kronor in 2010, largely owing to soaring prices for materials, especially cotton, which significantly hiked its purchasing costs, the company said in its earnings statement.
Sales meanwhile swelled 1.5 percent to 128.8 billion kronor.
"H&M stands strong in a challenging market," chief executive Karl-Johan Persson insisted in the statement.
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