Home / Knowledge / News / Fashion / H&M online sales soar 24 per cent in Q4FY18

H&M online sales soar 24 per cent in Q4FY18

01
Feb '19
Courtesy: H&M
Courtesy: H&M
Online sales at Hennes & Mauritz (H&M) went up 24 per cent in Swedish currency in the fourth quarter of fiscal 2018. Today, H&M online is represented in 47 markets and in 2019, Mexico will be added as well as Egypt that will open via franchise. Three new fulfilment centres were opened during the quarter, increasing capacity – particularly for online sales.

In the reported period, net sales increased 12 per cent to SEK 56,414 million during the fourth quarter. In local currencies, net sales rose 6 per cent, driven by improved full-price sales and lower markdowns.

H&M was able to outperform a number of markets in the fourth quarter. In the UK, it witnessed 38 per cent online growth, offset against a 1 per cent decline in stores, led to total growth of 8 per cent. In several markets, the total growth was driven by both physical stores and online. Among these were China (+24 per cent), India (+43 per cent) and Russia (+27 per cent). However, other markets such as the US and Norway, were more challenging. In parallel with the global online roll-out, it is intensifying itsstore portfolio optimisation and continues the integration of physical stores and digital channels.

"It has been a challenging year for H&M group and the industry but after a difficult first half, there are signs the company’s transformation efforts are beginning to take effect. Improved collections generated better full-price sales and lower markdowns towards the end of the year. This gave us confidence to accelerate our transformation plans in the fourth quarter with a particular focus on the upgrade of our logistics systems. Inevitably resulting in increased costs but will lead to a range of improvements for customers," Karl-Johan Persson, CEO.

Stronger collections and increased full-price sales mean that for the first quarter 2019 the company expects markdowns to be around 1 percentage point lower and a continued improvement in the inventory situation compared with the previous quarter. In 2019 the H&M group plans a net addition of 175 new stores, of which almost half will consist of newer brands.

"Changing consumer behaviour and technological innovation will continue to transform how and when people shop. We are building a business with the flexibility to respond to this constant evolution. We have further to go, and there will continue to be challenges ahead, but the progress we have made across our transformation priorities reinforces the strength of our strategy and gives us confidence to move ahead at full speed," concluded Persson. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 23rd Sep 2021

Global economic recovery continues but remains uneven: OECD

The global economy is growing far more strongly than anticipated a...

Pic: Shutterstock

Textiles | On 23rd Sep 2021

President Biden plays down probability of US-UK trade deal

US President Joe Biden has played down the chances of a post-Brexit...

Pic: Shutterstock

Textiles | On 23rd Sep 2021

ADB revises down Cambodia’s growth forecast, sees rebound in 2022

Cambodia’s economy is projected to grow by 1.9 per cent this year...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Always best to produce under own supervision

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

Textile Industry, Head honchos

Textile Industry
Head honchos

Consistency is the first rule of social media

Erwin Devloo,

Erwin Devloo

The Picanol Group is a diversified industrial group active worldwide in...

C Maennich,

C Maennich

Trützschler, one of the world's leading textile machinery manufacturers,...

Meghavi Suthar,

Meghavi Suthar

Founded by NIFT graduate <b>Meghavi Suthar </b>in 2017, Kala is an...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Daniel Odermatt, Ventile

Daniel Odermatt
Ventile

Ventile is a registered trademark used to brand a special high-quality...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by <b>Aprajita Toor</b> were born out of a deep desire to...

Raghavendra Rathore, Label Raghavendra Rathore Jodhpur

Raghavendra Rathore
Label Raghavendra Rathore Jodhpur

Being one of the first designers to use the "Brand India" positioning for...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2021

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


Advanced Search