- Prachi Singh |
For the first half-year period from December 1, 2014 to May 31, 2015, well-received collections for all brands in the H&M group resulted in good sales and increased market share. The H&M group’s sales excluding VAT increased by 23 percent to 86,143 million Swedish Krona (10,462 million dollars) during the first six months of the financial year. In local currencies the increase was 12 percent.
Profit after financial items increased 18 percent. The group’s profit after tax increased to 10,066 million Swedish Krona (1,222.5 million dollars), corresponding to 6.08 Swedish Krona (0.74 dollars) per share, an increase of 19 percent.
For the second quarter from March 1, 2015 to May 31, 2015, the sales excluding VAT increased by 21 percent. In local currencies the increase was 10 percent. Gross profit increased 18 percent. This corresponds to a gross margin of 59.4 percent. Profit after financial items saw an increase of 11 percent.
“The strong sales development has continued for all our brands with a sales increase in SEK of 23 percent excluding VAT during the first half-year. Looking specifically at the second quarter, i.e. March to May, sales development was again strong. Later in the second half of the year we are looking forward to opening in two interesting and large markets – India and South Africa, where we will open in New Delhi and Cape Town,” said Karl-Johan Persson, CEO, on the company’s performance and future plans.
H&M’s first store in Lima, Peru and Macau received a positive response after their opening in May and June respectively. H&M’s eight new online markets; Poland, Portugal, Romania, the Czech Republic, Bulgaria, Slovakia, Hungary and Belgium also witnessed good response on opening in March and April. Sales in the period June 1 to June 23, 2015 increased by 14 percent in local currencies compared to the same period last year.
The H&M group plans a net addition of around 400 new stores for the financial year 2014/2015. In total, H&M will expand its retail stores into five new markets in 2015, Taiwan, Peru, Macau, South Africa and India. Starting from July 2015, H&M Beauty will gradually be launched in 900 H&M stores in 40 markets as well as online.