H&M Profit Misses Estimates as Retailer Absorbs Cost Rises

Hennes & Mauritz AB, the world’s second-largest clothing retailer, reported first-quarter profit that fell more than analysts anticipated as the company decided against passing on higher costs to customers.

Net income dropped 30 percent to 2.62 billion kronor ($420 million) in the quarter ended Feb. 28 from 3.74 billion kronor from the year-earlier period, the Stockholm-based company said in a statement today. The average estimate of 13 analysts surveyed by Bloomberg was for profit of 2.77 billion kronor.