- Prachi Singh |
Hennes & Mauritz (H&M) has said that for the full year from December 1, 2014 to November 30, 2015), well-received collections for all brands under the H&M group resulted in good sales of 210 billion Swedish Krona (24.6 billion dollars) including VAT and increased market share. The H&M group’s sales excluding VAT increased by 19 percent to 180,861 million Swedish Krona (21,246 million dollars) during the financial year. In local currencies the increase was 11 percent.
For the fourth quarter from September 1, 2015 November 30, 2015, the H&M group’s sales in SEK excluding VAT increased by 14 percent to 48,694 million Swedish Krona (5,720 million dollars). In local currencies the increase was 9 percent.
“2015 has been a very expansive year for the H&M group. We have opened 413 new stores net, of which 249 in the fourth quarter, as well as ten new H&M online markets and we have successfully established stores in our new markets of India, South Africa, Peru, Taiwan and Macau. Sales have developed well for all our brands: H&M, H&M Home, COS, & Other Stories, Weekday, Monki and Cheap Monday. Our growth target of increasing the number of stores by 10-15 percent per year with continued high profitability remains intact. In 2016 we plan to open 425 new stores net and open H&M stores in three new markets,” said Karl-Johan Persson, CEO, H&M.
Annual profit up, Q4 witnesses decline
Gross profit for the whole year increased by 16 percent to 103,167 millio Swedish Krona (12,120 million dollars). This corresponds to a gross margin of 57 percent. Profit after financial items increased by 5 percent. The group’s profit after tax also increased by 5 percent.
The Group carried out a strong expansion during the year with a total net addition of 413 new stores and ten new online markets. At the end of the financial year H&M had 23 online markets and the number of stores amounted to 3,924 in 61 markets. H&M said that new store openings in India and in South Africa received a positive response.
Gross profit for the fourth quarter increased 9 percent. This corresponds to a gross margin of 57.5 percent. Profit after financial items and the group’s profit after tax declined during the quarter. Profits in the quarter, the company said, were negatively affected by substantially higher purchasing costs due to the strengthened US dollar.
Declares dividend, further expansion on cards
The Board of Directors proposes a dividend of 9.75 Swedish Krona (1.15 dollars) per share for the 2014/2015 financial year.
Sales including VAT in December 2015 increased by 10 percent in local currencies compared to the corresponding month the previous year. Sales including VAT in January 2016 are expected to increase by 7 percent in local currencies compared to the same month last year.
The H&M group plans a net addition of around 425 new stores for the 2015/2016 financial year. Most of the expansion will take place in existing markets. New Zealand, Cyprus and Puerto Rico are planned to become new H&M markets. In addition, H&M plans to offer e-commerce in a further nine existing H&M markets.
“We closely follow developments in the market in each country where we are present. For 2016 we see many opportunities, but are also well aware of the challenges that exist. We firmly believe that our customer offering and our investments will lead to increased market share and strengthen H&M’s position even further in 2016,” added Persson.