Hennes & Mauritz AB reported a 14 percent increase in net profits

The company said the continued weak U.S. dollar led to lower buying costs. This was partly offset by slightly higher discounting and increased transportation costs.

Europe's second-largest clothing
retailer said net profit increased to 3.94 billion kronor ($653
million) in the second quarter from 3.47 billion kroner a year
earlier.

The result was helped by a strong
pickup in sales in May, after weak sales in March and April. Sales
for May rose by 25 percent in local currencies compared with the same
month last year.

The company said the sales development
during the quarter directly coincided with weather conditions and
shows how weather-sensitive the textile business is.

On May 31, the total number of H&M
stores had increased to 1,593 from 1,420 a year ago. The company said it plans to expand the
number of stores by a further 139 during the remainder of the year.