Home / Knowledge / News / Apparel/Garments / H&M's Q1 sales up 9% in local currencies
H&M's Q1 sales up 9% in local currencies
Apr '16
Courtesy: H&M
Courtesy: H&M
H&M group’s sales, including VAT, increased by 9 per cent in local currencies in Q1 (1 December 2015 – 29 February 2016). The company’s sales in SEK terms, including VAT, increased by 8 per cent to SEK 50,624 m. Sales excluding VAT amounted to SEK 43,691 m.

Gross profit amounted to SEK 22,699 m. This corresponds to a gross margin of 52 per cent. Profit after financial items amounted to SEK 3,327 m. The group’s profit after tax was SEK 2,545 m, corresponding to SEK 1.54 per share. Profit in the quarter were negatively affected by substantially higher purchasing costs due to the strengthened $ and by increased markdowns.

The group’s sales including VAT increased by 2 per cent in local currencies in March 2016 as compared to the corresponding month the previous year. Total sales in March, April and May should be seen together as Easter and weather during this period affect comparability of an individual month.

H&M’s e-commerce reported very satisfactory sales and profit development. As of 31 March, 2016, the company offers e-commerce in seven additional countries: Croatia, Estonia, Ireland, Latvia, Lithuania, Luxembourg and Slovenia. Very soon, it will launch e-commerce in Japan, and later in the year in Greece, Canada and South Korea. A total of 11 H&M online markets will thus be added in 2016, which means that H&M will offer e-commerce in 34 markets by the end of the year.

Its store number 4,000 will open in the Mall of India in New Delhi in April. The group plans a net addition of around 425 new stores for the financial year 2015-16. Most of the expansion will take place in existing markets. New Zealand, Cyprus and Puerto Rico are planned to become new H&M markets.

Commenting on the results, Karl-Johan Persson, CEO of H&M said, “Profits in this year’s first quarter have been negatively affected by a continued very negative US-dollar effect which made our purchasing much more expensive, as well as by increased markdowns due to larger volumes of winter garments that remained as a result of the warm autumn.”

“Our strong expansion continues, we are gaining market share and we are confident that we can grow at a fast pace both through stores and online, in existing as well as in new markets, for many years to come,” he said.

For the second quarter of 2016, he said, “The negative dollar effect continues for purchases made for the second quarter 2016, although the negative effect has begun to gradually decrease due to the start of the annualisation of last year’s strong US-dollar exchange rate.”

“Should today’s exchange rates continue, the effect of the US dollar on purchasing costs for the fourth quarter will be neutral or slightly positive compared to the corresponding quarter the previous year,” he added. (MCJ)


Must ReadView All

Union textiles minister Smriti Irani addressing at the Texprocil Annual Export Awards. Courtesy: PIB

Textiles | On 22nd Oct 2016

Govt to extend special package to home textiles segment

The Central government is likely to extend the recently approved Rs...

Reebok Liquid Speed Grey. Courtesy: Business Wire

Apparel/Garments | On 22nd Oct 2016

Reebok’s Liquid Factory brings sneaker creation to US

Reebok, a pioneer in the sporting goods industry, has brought sneaker ...

Courtesy: GHCL

Textiles | On 22nd Oct 2016

GHCL to invest Rs 67.25 crore in textile division

Chemicals and textiles firm GHCL will invest Rs 67.25 crore in its...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search