Summary Box: Cotton price takes its toll on H&M

Summary Box: Cotton price takes toll on H&M; clothes seller to launch new chain in 2013

Associated Press

SLAMMED BY COTTON: Fashion retailer Hennes & Mauritz AB reported Thursday that its first-quarter earnings rose 5 percent, thanks to higher sales. But it said the high price of cotton ate into its profit.

THE DETAILS: H&M's net income was 2.74 billion kronor ($411 million) for the quarter that ended in February, up from 2.62 billion kronor a year earlier. The Stockholm-based company said its sales rose to 27.8 billion kronor, from 24.5 billion kronor, and they kept rising in March.

DISAPPOINTMENT: The earnings figure fell short of analysts' expectations, and H&M's share price fell 5 percent in Stockholm to 238.10 Swedish kronor ($35.72).

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