Spring collections boost sales for H&M
In the six months to 31 May 2014, H&M's sales including VAT increased in local currencies by 14%. Converted into SEK (Swedish Krona), sales excluding VAT amounted to SEK 69,970 m (60,027), an increase of 17%.
Profit after financial items amounted to SEK 11,129 m (9,359), an increase of 19%. The group’s profit after tax increased to SEK 8,458 m (7,113).
The group has embarked on ambitious expansion plans with the Philippines and India set to become new H&M countries in autumn 2014.
Online plans include three large new markets in autumn 2014: Spain, Italy and China. H&M plans to open eight to 10 new online markets in 2015.
Karl-Johan Persson, CEO, commented: ”We have had a good second quarter with a strong increase in both sales and profits and increased market share. Well-received collections and continued strong expansion led to a sales increase of 20% in SEK and 16 percent in local currencies. The strong sales development together with good cost control contributed to an increase in operating profits of 26%.
"All our brands - H&M, COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home – enjoyed good sales development during the second quarter. We are very pleased that H&M Sport, which we are broadening further, continued to gain market share within the sports segment.
"H&M is a leading company within sustainability; we feel a great responsibility for these matters and we are striving to bring about improvements for people and the environment in the countries where we operate. We are proud of what we have accomplished so far, even if there is still much to do. We believe that our work with sustainability is also becoming more and more visible to our customers and other stakeholders."
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