Strong dollar pulls down H&M net profit

Swedish ready-to-wear giant Hennes and Mauritz (H&M) said Tuesday annual net profit dropped by 11 percent due to higher purchasing costs from the rising dollar.

The group, which opened 427 new stores during that year, said its profit fell to 18.636 billion kronor (1.972 billion euros, $2.109 billion) in its 2015/2016 financial year, ending on November 30.

The profit drop of nearly two billion kronor was also a result of "an increase in discounts" after a cold spring in Europe.

In the fourth quarter, the group's net profit increased by seven percent to 5.9 billion kronor.

Measured in local currencies, sales jumped by seven percent to 223 billion kronor in 2015/2016.