Home / Knowledge / News / Apparel/Garments / H&M's profit after tax down in Q2 2016
H&M's profit after tax down in Q2 2016
29
Jun '16
Courtesy: H&M
Courtesy: H&M
Swedish fashion house H&M reported fall of 20 per cent in profit after tax to SEK 5,357 million in the second quarter of 2016, ended May 31, as compared to SEK 6,453 million in the corresponding quarter last year, attributed to strengthened US dollar and increased markdowns.

“Profits in the second quarter have been affected by a continued negative US dollar effect, but also by increased markdowns and the costs of our long-term investments. The fact that the sales increase in the quarter was below plan, naturally also had an impact on profits,” Karl-Johan Persson, CEO of H&M said.

Sales including VAT increased by 2 per cent in local currencies in Q2 to SEK 54,341 million as compared to SEK 53,233 million in the same period last year. Excluding VAT, sales amounted to SEK 46,874 million as compared to SEK 45,867 million previously.

The group's profit after tax was reported to be SEK 3.24 per share as compared to SEK 3.90 per share in the previous quarter, affected mostly by higher purchasing costs because of strengthened US dollar and by increased markdowns.

“It has been a challenging half-year for fashion retail in many markets, but we have great confidence going forward and are continuing to develop our offering further within all our brands,” Persson added. (MCJ)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search