Sales up at Hennes & Mauritz
H & M ( Hennes & Mauritz ) announced the successfully reported result for the first quarter 2010
In view of the continued weak economy during the quarter, the company considers that sales have been satisfactory. The spring collections have been well received. Sales excluding VAT translated into SEK increased by 7 percent. In local currencies the increase was 13 percent. In comparable units sales increased by 2 percent.
The quarter's gross margin has this year been positively affected by currency effects of 0.8 percentage units from the currency hedges of the mark-up on sales of goods to the subsidiaries. In the corresponding quarter last year the gross margin was negatively affected by currency effects of totally 4.2 percentage units.
Increased markdowns affected the gross margin negatively by 1.6 percentage units compared to the corresponding quarter last year.
The cost control in the Group continued to be good. Selling and administrative expenses amounted to SEK 10,412 m (9,814) in the quarter, an increase of 6 percent. In local currencies the increase was 12 percent. The cost increase is related to the expansion.
The stock-in-trade decreased by 7 percent compared to the same time last year. The decrease is mainly related to currency translation effects. The stock-in-trade is considered to be well composed and at a good level.
The First Quarter
• The H&M Group's sales excluding VAT amounted to SEK 24,846 m (23,299), an increase of 7 percent. In local currencies, the increase was 13 percent.
• Gross profit amounted to SEK 15,390 m (13,178), corresponding to a gross margin of 61.9 percent (56.6).
• Profit after financial items amounted to SEK 5,055 m (3,554), an increase of 42 percent. Group profit after tax was SEK 3,741 m (2,577), corresponding to SEK 4.52 (3.11) per share.
• Sales in February increased by 10 percent in local currencies compared to the same month last year.
• Successful opening in Seoul, South Korea in February.
• Successful franchise openings in Tel Aviv and Jerusalem, Israel in March.
• Sales in March increased by 21 percent in local currencies compared to the same month last year.
Sales including VAT for the first three months amounted to SEK 29,095 m (27,282), an increase of 7 percent. In local currencies the increase was 13 percent and in comparable units sales increased by 2 percent. H&M Group sales excluding VAT amounted to SEK 24,846 m (23,299), an increase of 7 percent.
Sales including VAT in local currencies increased by 10 percent in February 2010 compared to the same month the previous year. Sales in comparable units decreased by 1 percent.
The Group opened 10 (13) stores and closed 6 (3) stores during the three-month period. The total number of stores in the Group as per 28 February 2010 thus amounted to 1,992 (1,748), of which 37 are franchise stores, 23 COS stores and 48 storeswithin the FaBric Scandinavien Group.
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Hennes and Mauritz Group