By Jens Hansegard

STOCKHOLM--Swedish fashion retailer Hennes & Mauritz AB (HM-B.SK) Wednesday said it plans to add several new online countries during 2014, as its second-quarter net profit fell more than analysts had expected.

"Although sales remained strong in Asia, overall sales were not satisfactory mainly due to the continued challenging situation for the fashion retail industry as well as unfavourable weather in March and a couple of weeks into April in many of our big markets," Chief Executive Officer Karl-Johan Persson said.

The Stockholm-based retailer said net profit fell to 4.66 billion Swedish kronor ($723.14 million) in the three months to May 31, from SEK5.22 billion a year earlier. Analysts had expected a net profit of SEK4.88 billion.

The company repeated that it plans to open around 350 new stores net in 2013, with most of the new ones planned for China and the U.S.

The company said that its COS chain continues to perform well and that it will open new COS stores in Turkey and Switzerland in the autumn.

The company said that it will launch online sales in August in the U.S.

"There is great potential in the growing online market [...] we are continuing our work on the global roll-out of H&M's online store, with the aim of adding several new online countries during 2014," Mr. Persson said, adding that the company continues with its investments in IT, online sales, new brands and broadening the range.

"Although most of these long-term investments have not yet generated revenues, we see them as wise and necessary," Mr. Persson said

Comparable store sales fell 4% in the second quarter and reported sales were hit by substantial negative currency translation effects, the company said.

H&M said sales have got off to a good start in June, with sales up 14% in local currencies from June 1 to June 17.

Sales excluding value-added tax fell to SEK31.64 billion from SEK31.66 billion a year earlier.

Operating profit fell to SEK6.02 billion from SEK6.89 billion, below a forecast of SEK6.30 billion. Gross margin dipped to 61.1% from 61.7% a year earlier.

Shares in Stockholm closed Wednesday at SEK224.90, valuing the company at SEK372.23 billion.

Write to Jens Hansegard at jens.hansegard@dowjones.com

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