H & M HENNES & MAURITZ AB SIX-MONTH REPORT

1 December 2010 - 31 May 2011

THE FIRST HALF-YEAR

· The H&M Group's sales including VAT increased by 10 percent in local
currencies in the
first six months of the financial year. Sales increased by 2 percent in
comparable units.
Sales in SEK were strongly negatively affected by currency translation
effects.
Converted into SEK, sales excluding VAT amounted to SEK 52,135 m
(51,879).
· Profit after financial items amounted to SEK 9,290 m (12,095). Group
profit after tax was
SEK 6,875 m (8,950), corresponding to SEK 4.15 (5.41) per share.

THE SECOND QUARTER

· The H&M Group's sales including VAT increased by 12 percent in local
currencies in
the second quarter. Sales increased by 2 percent in comparable units.
Converted into SEK, sales excluding VAT amounted to SEK 27,632 m
(27,033).
· Gross profit amounted to SEK 17,057 m (17,808), corresponding to a
gross margin of
61.7 percent (65.9).
· Profit after financial items amounted to SEK 5,752 m (7,040). Group
profit after tax was
SEK 4,257 m (5,209), corresponding to SEK 2.57 (3.15) per share.

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Comments on the second quarter by Karl-Johan Persson, CEO

”Sales were good in the quarter with an increase of 12 percent in local
currencies. We continue to gain market shares in a very challenging
market, which proves H&M's strong position. Increasing interest rates,
higher energy prices and austerity measures in many economies have
decreased consumer spending power. During the spring, the fashion retail
industry has been characterised by many price campaigns and special
offers.

Our profitability remained strong with an operating margin of 20.3
percent despite strong negative effects from many external factors that
were beyond our influence, such as the high cotton prices.
In addition to the cost inflation in the sourcing markets, a provision
of SEK 248 million related to our recently started incentive programme
for all employees, had a negative effect on profits. Also, the strong
development of the Swedish krona continued to have a substantial
negative effect on our reported profits in SEK.

We are optimistic about the future for H&M despite challenging
conditions both in the sales markets and in the sourcing markets. We see
great potential for future growth in existing as well as in new markets.
Our business concept works well in all our markets as seen for example
in recently added and fast growing markets such as China where we expand
more rapidly.”

The information in this Interim Report is that which H & M Hennes &
Mauritz AB (publ) is required to disclose under Sweden's Securities
Market Act. It will be released for publication at 8.00 (CET)
on 22 June 2011.

CONTACT PERSONS

Nils Vinge, IR +46-8-796 52 50
Jyrki Tervonen, CFO +46-8-796 52 77
Karl-Johan Persson, CEO +46-8-796 52 33
Switchboard +46-8-796 55 00

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46-8-796 55 00, Fax: +46-8-24 80 78, E-mail:
info@hm.com (info@hm.com)
Registered office: Stockholm, Reg. No. 556042-7220

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is
quoted on NASDAQ OMX Stockholm. The company's business concept is to
offer fashion and quality at the best price. In addition to H&M, the
group includes the brands COS, Monki, Weekday and Cheap Monday as well
as H&M Home. The H&M Group has approximately 2,300 stores in 40 markets
including franchise markets. In 2010, sales including VAT were SEK
126,966 million and the number of employees was more than 87,000. For
further information, visit www.hm.com (http://www.hm.com/).

H & M HENNES & MAURITZ AB SIX-MONTH REPORT

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