STOCKHOLM (AP) - Swedish retailer Hennes & Mauritz AB says higher sales helped it post a modest rise in fourth quarter profits despite negative currency effects.

STOCKHOLM (AP) Swedish retailer Hennes & Mauritz AB says higher sales helped it post a modest rise in fourth quarter profits despite negative currency effects.

The budget fashion chain said Thursday net profit in the three months to end-November was 5.61 billion Swedish kronor ($871 million), up 6 percent from 5.29 billion in the same period 2012.

Fourth-quarter sales rose by 11 percent to 22.19 billion kronor from 20.02 billion despite the higher cost of converting earnings made abroad back to kronor.

The earnings were worse than expected and H&M shares fell by 3 percent to 278.6 kronor in early trading on the Stockholm stock exchange.

The company said it plans to add around 375 new stores in the financial year 2013-2014.