H&M earnings fall again

Hennes & Mauritz (H&M) AB, a leading clothing retailer, said the rising cost of making garments led to a third straight drop in quarterly earnings.

Profitability shrank in the second quarter as H&M held prices low to lure shoppers and bore the brunt of higher labor expenses in Asia and the soaring cost of cotton. Group sales increased 12 percent in local currencies as margins narrowed, the Stockholm-based company said in a statement on Wednesday.

China Daily-Agencies