Swedish apparel retailer H&M group’s sales in SEK excluding VAT increased by 14 per cent to SEK 48,694 million during the fourth quarter. In local currencies, the increase was 9 per cent. Gross profit amounted to SEK 27,997 million, up 9 per cent.
Profit after financial items amounted to SEK 7,148 million at H&M. The group’s profit after tax amounted to SEK 5,526 million, corresponding to SEK 3.34 (3.76) per share. Sales including VAT in December 2015 increased by 10 per cent in local currencies compared to the corresponding month the previous year.
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In full-year (December 1, 2014 to November 30, 2015), well-received collections for all brands in the H&M group resulted in good sales of SEK 210 billion including VAT and increased market share. The apparel retailer’s sales excluding VAT increased by 19 per cent to SEK 180,861 million during the financial year. In local currencies, the surge was 11 per cent. Gross profit increased by 16 per cent to SEK 103,167 million.
The apparel giant is optimistic about 2016 as well… Sales including VAT in the current month are expected to rise by 7 per cent in local currencies compared to the same month last year. It also plans a net addition of around 425 new stores for the 2015-16 financial year. Most of the expansions 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.
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Karl-Johan Persson, CEO of H&M said, “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,” adding, “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.”
