H&M optimistic despite lower profits than expected - Third store in Serbia soon

(Photo: Teodora Brnjoš)

H&M, the world's second biggest fashion retailer after Spain's Inditex, posted a pre-tax profit of 7.3 billion Swedish crowns (EUR 828 million), missing average analyst forecasts for 7.6 billion.

Despite that, this Swedish giant is optimistic when it comes to the sales in 2014, Reuters has reported.

H&M said it expected sales to rise 15 percent in January after they rose 10 percent in December, the first month of its fiscal first quarter.

- Although there are still macro-economic challenges in several of our markets, we are optimistic about 2014 which will be an exciting year with new countries and new opportunities - Chief Executive Karl-Johan Persson said in a statement.

H&M said it expected to open 375 stores in 2014, including entering new markets Australia and the Philippines.

After opening two stores in Serbia, H&M plans to open another one in Novi Sad in February.