STOCKHOLM (dpa-AFX) - Shares of Hennes & Mauritz AB or H&M Group (HNNMY.PK,
HMRZF.PK, HEN.L) were gaining around 14 percent in the morning trading in Sweden
on Wednesday after the Swedish clothing major reported significantly higher
first-quarter profit, despite weak net sales.

Regarding the current trading, H&M said its sales in the period March 1 to 25
increased by 2 percent in local currencies.

Separately, H&M said its nomination committee proposes that Helena Saxon is
elected as a new member of the board of directors. It is proposed that
Karl-Johan Persson is re-elected as chair of the board.

The annual general meeting will be held on May 3 to resolve, among other things,
on the board's proposed dividend of 6.50 Swedish kronor per share, to be paid in
two instalments.

In its first quarter, result after tax increased to 1.20 billion kronor from
last year's 540 million kronor. Earnings per share were 0.75 krona, up from 0.33
krona a year ago.

Operating profit amounted to 2.08 billion kronor, significantly higher than last
year's 725 million kronor. Operating margin was 3.9 percent, up from 1.3 percent
a year ago.

Gross profit increased 7 percent from last year to 27.67 billion kronor, and
gross margin improved to 51.5 percent from prior year's 47.2 percent.

Meanwhile, H&M group's net sales fell to 53.70 billion kronor from prior year's
54.87 billion kronor.

In Stockholm, H&M shares were trading at 175.10 kronor, up 13.48 percent.

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