Swedish retailer Hennes & Mauritz (H&M) saw higher than expected profits in the third quarter thanks to growth in the Asian market, the company reported Thursday.
Net profits hit 4.4 billion Swedish kronor ($690m), a 22 percent increase over the third quarter in 2012.
H&M CEO Karl-Johan Persson said in a press release, “Our well received summer collections have resulted in strong sales development in the quarter, particularly in Asia but also in a number of European markets.”
This month the retailer opened their 3,000th store in Chengdu, one of China’s prime cities, and plans to continue strong expansion efforts in the country. H&M has already opened 215 stores in 2013, including new countries Chile, Lithuania, Serbia and Estonia, and plans to reach roughly 350 by the year’s end.
Persson also attributed the favorable third quarter earnings to the successful launch of H&M online in the US in August, saying the company’s offering “stands up well in the world’s largest online market.”
Sales at the fashion retailer are up 8 percent in local currencies so far for the month of September compared to last year this time.
Persson said the company’s high-end Cos brand will see continued growth, H&M online stores will roll out globally and the retailer’s rapid expansion will carry on in 2014.