H&M reports 23% rise in Q3 net profit

29 Sep '10

3 min read

H & M Hennes & Mauritz AB announced Nine month report.

Nine Months

• The H&M Group's sales excluding VAT during the first nine months of the financial year amounted to SEK 78,772 m (73,382), an increase of 7 percent. In local currencies, the increase was 14 percent.
• Profit after financial items amounted to SEK 17,830 m (14,111), an increase of
26 percent. Group profit after tax was SEK 13,194 m (10,230), corresponding to
SEK 7.97 (6.18) per share.

The Third Quarter

• Strong sales increase and strong profit development.
• The H&M Group's sales excluding VAT during the third quarter amounted to SEK 26,893 m (23,545), an increase of 14 percent. In local currencies, the increase was 21 percent and
1 percent in comparable units.
• Gross profit amounted to SEK 16,279 m (14,514), corresponding to a gross margin of 60.5 percent (61.6).
• Operating profit increased by 20 percent to SEK 5,656 m (4,700), corresponding to an operating margin of 21.0 percent (20.0).
• Profit after financial items amounted to SEK 5,735 m (4,773). Group profit after tax increased by 23 percent to SEK 4,244 m (3,460), corresponding to SEK 2.56 (2.09) per share.
• Sales in August increased by 24 percent in local currencies compared to the same month last year. Sales in comparable units increased by 14 percent.
• The autumn collections have been well received. Sales in the period 1 – 27 September 2010 increased by 15 percent in local currencies compared to the same period last year.
• The completion of some shopping malls that already had been started has been halted which means that H&M will not get access to approximately 20 planned store locations for the autumn 2010. This means that the store net for the full-year is planned to be approximately 220 compared to the 240 stores previously communicated.
• Successful launch of H&M online sales in the UK in September.

Sales
Sales including VAT for the first nine months of the financial year amounted to
SEK 92,174 m (85,939), an increase of 7 percent. In local currencies the increase was
14 percent and in comparable units sales increased by 4 percent. H&M Group sales excluding VAT amounted to SEK 78,772 m (73,382), an increase of 7 percent.

Sales including VAT for the third quarter amounted to SEK 31,475 m (27,587), an increase of 14 percent. In local currencies the increase was 21 percent. Sales in comparable units increased by 11 percent. Sales excluding VAT for the third quarter amounted to SEK 26,893 m (23,545), an increase of 14 percent.

In August 2010, sales including VAT in local currencies, increased by 24 percent compared to the same month the previous year. Sales in comparable units increased by 14 percent.

H& M Hennes & Mauritz AB was founded in Sweden in 1947 and is quoted on NASDAQ OMX Stockholm. The company's business concept is to offer fashion and quality at the best price. In addition to H&M, the group includes the brands COS, Monki, Weekday and Cheap Monday as well as H&M Home. The H&M Group has more than 2,000 stores in 37 markets. In 2009, sales including VAT were SEK 118,697 million and the number of employees was around 76,000.

H & M Hennes & Mauritz AB

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