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H&M profits from Madonna

Shoppers flock to the H&M store on Oxford Circus in central London, Thursday, March 22, 2007 for the launch of Madonna's 'M By Madonna' fashion collection. A line of clothing co-designed by pop queen Madonna went on sale around the world Thursday in branches of Swedish fashion retailer Hennes & Mauritz. (AP Photo/ Yui Mok, PA) ** UNITED KINGDOM OUT NO SALES NO ARCHIVE **

OSLO (Bloomberg) — Crowds of shoppers gathered outside Hennes & Mauritz AB’s Stockholm store to snap up clothes designed by Madonna.The company said in December it was teaming with the pop singer to sell clothing and accessories that capitalise on her fame. The M by Madonna line, which follows a prior collaboration on a track suit, went on sale yesterday across H&M stores carrying women’s clothes.

The premiere of the Madonna line helped to draw hundreds of customers to the company’s first Asian store, in Hong Kong, at its grand opening on March 10. The first 20 customers into the shop received trench coats autographed by the pop star, and the next 500 got sunglasses from her M collection.

The Stockholm store is located in the building that H&M, Europe’s second-largest clothing retailer, is turning into its new headquarters. About 150 people had entered the shop soon after it opened to buy goods including leather jackets priced at 1,498 kronor ($215) and a 798-kronor trench coat.

“I came here because I wanted this,” Louise Lindstroem, 16, said of the off-white coat. “It wasn’t as bad as I had expected. I thought there would be more people.”

H&M, which has been surpassed by Inditex SA as Europe’s biggest apparel retailer, is banking on goods such as a one- time collection by Dutch designers Viktor & Rolf that went on sale last year to revive revenue.

“It’s just a cool and fun thing,” shopper Cecilia Salomonsson, 38, said of the collection. She bought two scarves and a pair of sunglasses.

Products from the line including a black cocktail dress and a cat suit sold out on H&M’s Web site hours after the clothes went on sale in stores.