Hennes & Mauritz (H&M) AB reports results for the period of first six months for 2014.
First half-year (1 December 2013 — 31 May 2014)
The H&M Group’s sales including VAT increased in local currencies by 14 percent during the first six months of the financial year. Converted into SEK, sales excluding VAT amounted to SEK 69,970 m (60,027), an increase of 17 percent.
Profit after financial items amounted to SEK 11,129 m (9,359), an increase of 19 percent. The group’s profit after tax increased to SEK 8,458 m (7,113), corresponding to SEK 5.11 (4.30) per share.
Second quarter (1 March 2014 — 31 May 2014)
Well-received spring collections resulted in strong sales and increased market share. The H&M Group’s sales including VAT increased in local currencies by 16 percent during the second quarter. Converted into SEK, sales excluding VAT amounted to SEK 37,827 m (31,635), an increase of 20 percent.
Gross profit amounted to SEK 23,010 m (19,337), an increase of 19 percent. This corresponds to a gross margin of 60.8 percent (61.1).
Profit after financial items amounted to SEK 7,643 m (6,125), an increase of 25 percent. The group’s profit after tax increased to SEK 5,809 m (4,655), corresponding to SEK 3.51 (2.81) per share, an increase of 25 percent.
H&M’s first store in Australia has had a fantastic reception since opening at the beginning of April.
H&M’s online sales in France, which were launched in March, have got off to a very good start.
Strong sales development for the other brands in the H&M Group: COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home.
Sales in June have so far got off to a good start. An extended shoe range will be launched in early autumn 2014. Strong expansion in 2014, with approximately 375 new stores net in total. The Philippines and India will become new H&M countries in autumn 2014. Three large new online markets in autumn 2014: Spain, Italy and China. H&M plans to open 8 – 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 percent 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 percent.