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H&M Profit Misses Estimates as Discounting Weighs on Margin

Hennes & Mauritz AB reported fourth-quarter profit that missed estimates as Europe’s second-biggest clothing retailer stepped up discounting amid a battle for business in a market weighed down by mild winter weather.

Net income rose 6.1 percent to 5.61 billion kronor ($869 million) in the three months ended Nov. 30, Stockholm-based H&M said today, less than the 6 billion kronor average of 12 analyst estimates compiled by Bloomberg. The gross margin narrowed to 60.8 percent from 61.6 percent a year earlier.