SWEDISH CLOTHING retailer Hennes & Mauritz (HM) has reported a pretax profit on its Irish stores of about €997,000 for 2008, down from a profit of €4.6 million in 2007.

According to documents filed at the Companies Office, H&M Hennes & Mauritz (Ireland) said the profitability of the company declined as a result of the new global pricing strategy, which was introduced in September 2007.

The retailer, which specialises in clothing for younger people at a low price point, has 10 stores in Ireland and opened two in 2008, on Dublin’s King Street and Swords Shopping Centre. H&M said the opening of the two new stores, along with increased sales in existing stores, contributed to a growth in turnover.

Turnover in the year to the end of November 2008 increased 8.4 per cent to almost €43.8 million, its company accounts show.

However, the increased cost of sales meant that gross profit fell 13 per cent to €19.5 million.

The average number of staff employed by the company in Ireland was 273, up from 262 in 2007, and it had staff costs of €5.3 million last year. The retailer has expanded significantly since it opened its first Irish store in Dundrum Shopping Centre in 2005.

Collection of Style (COS), H&M’s higher-priced fashion chain for more mature customers, is thought to be scouting for Irish locations.