- Prachi Singh |
Net sales at Hennes & Mauritz AB (H&M) increased by 12 percent to 62,572 million Swedish krona (6,334,4 million dollars) in the third quarter, while net sales in the nine-month period increased by 11 percent to 171,061 million Swedish krona (17,317 million dollars). In local currencies the H&M group’s net sales increased by 8 percent in the third quarter and by 6 percent in the nine-month period. Profit for the quarter increased by 25 percent to 5,011 million Swedish krona (507 million dollars), while profit in the nine-month period increased by 6 percent to 11,988 million Swedish krona (1,213.7 million dollars).
“Well-received summer collections and increased market share show that we are on the right track with our transformation work to meet customers’ ever-increasing expectations. The continued development of more full-price sales and reduced markdowns contributed to a 26 percent increase in operating profit in the third quarter, all while maintaining a high level of activity in our transformation work,” said Karl-Johan Persson, the company’s CEO in a statement.
Highlights of H&M’s Q3 and nine-month performance
H&M said, online sales in the third quarter increased by 30 percent in SEK and in local currencies the increase was 25 percent, while new business increased sales in the third quarter by 18 percent in SEK and by 16 percent in local currencies. Sales in local currencies in September 2019, the company said, increased by 8 percent.
Gross profit increased by 13 percent to 31,815 million Swedish krona (3,220.7 million dollars) in the third quarter, corresponding to a gross margin of 50.8 percent, while for the nine-month period, gross profit increased to 89,166 million Swedish krona (9,026.7 million dollars), corresponding to a gross margin of 52.1 percent.
H&M to expand online reach in new markets across its brands
The company added that new store markets for H&M in the year to date are Bosnia-Herzegovina and Belarus, bringing the total number of markets to 73, with Tunisia to be added later in the year via franchise. In 2019 Iceland became a new store market for COS, Weekday and Monki. The brands Weekday, & Other Stories and Arket also opened their first stores in Luxembourg, COS opened in Lithuania and Monki in Poland and also via franchise in the United Arab Emirates. New markets to be added later in 2019 include Slovakia for COS, Switzerland for Weekday and Latvia for & Other Stories.
H&M further said that for the 2019 financial year, around 290 new stores including franchise are planned to open, the majority of which will open in the fourth quarter. More than 220 of the openings will be H&M stores and the remainder will be COS, & Other Stories, Monki, Weekday, Arket and standalone H&M Home stores. Approximately 170 stores will be closed as part of the intensified store optimisation.
Picture:H&M media gallery