H&M profits rise in Q4
H&M are one of the market leaders when it comes to high-street fashion, with their stores dotted around shopping centres and retail outlets in many different regions. Now, the fast-fashion giants have released their financial figures for the fourth quarter and the full fiscal year and there are some really impressive highlights.
The Swedish firm’s sales including VAT increased by 7% in local currencies during the fourth quarter. Converted into SEK, sales including VAT increased by 8% to SEK 61,098 million.
Gross Profit for Q4 increased to SEK 30,027 million, which corresponds to a gross margin of 57%. It is also important to note that H&M’s Q4 is for the period from 1 September 2016 to 30 November 2016, and so does not include a lot of the Christmas shopping time.
Looking at the year as a whole, H&M’s executives and investors alike will be very pleased, with their sales including VAT rising by 6% to SEK 222,865 million. They were also able to reveal that they had shown very strong expansion throughout the year, with a total net addition of 427 new stores, and 11 new H&M online markets. They now boast 35 online stores, with 4,351 brick and mortar stores in 64 countries.
Karl-Johan Persson, CEO of H&M, said in a statement:
“The year was characterised by the shift in the industry towards an ever growing online market and by digitalisation. We are very pleased that our online business developed very well for all our brands, both as regards sales and profitability. From an already high level we took further market share, which clearly proves that our investments in our online business have been successful. Our brands COS, & Other Stories, Monki, Weekday and H&M Home had apart from strong online sales growth also very good store sales.
“It is also positive that sales developed well for H&M in our well-established markets such as Sweden and the other Scandinavian countries and in Russia, Turkey and Canada, but also in our newer markets such as India, Australia, South Africa, Mexico, Chile and Peru.”
Things are looking good for H&M as they continue to be one of the preferred choices for avid shoppers and online fashion fans alike. Their continued expansion into new markets is particularly promising.
Dominion holds Hennes & Mauritz (H&M) in its Global Trends Luxury Fund.
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