H&M clocks 12% rise in H1 FY'12 sales

The First Half-Year

• The H&M Group’s sales including VAT increased by 12 percent in local currencies in the first six months of the financial year. Sales in comparable units increased by 3 percent. Converted into SEK, sales excluding VAT amounted to SEK 59,491 m (52,135), an increase of 14 percent.
• Profit after financial items increased by 16 percent and amounted to SEK 10,754 m (9,290). Group profit after tax was SEK 7,958 m (6,875), corresponding to SEK 4.81 (4.15) per share.

The Second Quarter

• The H&M Group’s sales including VAT increased by 12 percent in local currencies in the second quarter. Sales in comparable units increased by 2 percent. Converted into SEK, sales excluding VAT amounted to SEK 31,658 m (27,632), an increase of 15 percent.
• Gross profit amounted to SEK 19,546 m (17,057), corresponding to a gross margin of
• 61.7 percent (61.7).
• Profit after financial items increased by 23 percent and amounted to SEK 7,053 m (5,752). Group profit after tax was SEK 5,219 m (4,257), corresponding to SEK 3.15 (2.57) per share.

In addition to the five new markets that H&M will open in 2012, H&M plans to open stores in several new markets in 2013. The markets where store contracts for 2013 have so far been signed are Estonia and Indonesia.

Comments by Karl-Johan Persson, CEO

“The year started well and the positive trend continued in the second quarter. In the second quarter we saw strong sales and profitability development, with a profit increase of 23 percent. The spring collections have been well received by our customers as shown by our increased market share in a fashion retail market that continues to be challenging.

“H&M’s attractive customer offering is appreciated by customers in all our 44 markets, in big cities as well as small cities – and in both countries with strong economic growth and countries with a tough macroeconomic climate.

Our expansion plan remains intact. We plan to open around 275 new stores net during the full-year. We continue to open new stores in all current markets and we will add five new markets during the year: Bulgaria, Mexico, Latvia, Malaysia and Thailand. In addition, online sales will be launched in the autumn in the US, the world’s largest online market.”

Hennes & Mauritz Ab (H&M)