SWEDEN: H&M FY profit up 7% after flat Q4
- FY net profit up 7% to SEK16.9bn (US$2.7bn)
- Net sales up 10% to SEK120.8bn
- FY comps up 1%; Q4 flat
Fashion retail giant H&M has boosted its full-year profits by 7%, thanks to a double-digit sales increase and positive comparable store sales.
In a year when the company opened more than 300 new stores, with China and the US the biggest expansion markets, margins narrowed slightly but the business increased its market share.
Fourth quarter net profit was down slightly, despite a 5% increase in sales and static comparable store sales.
H&M said sales in January were expected to increase by 5%, with bad weather affecting the second half of the month in some markets.
The company plans to add 325 new stores this year, making its debut in markets such as Chile, Estonia, Lithuania, Serbia and - through a franchise agreement - Indonesia.
"H&M continues to stand strong in a challenging clothing market which in many countries has been even more challenging in 2012 compared to 2011," said Karl-Johan Persson, company CEO.
"The fact that we increased sales by 11% in local currencies and 1% in comparable units whilst continuing to gain market share proves once again that customers appreciate our collections."
Analyst Richard Chamberlain, of Bank of America Merrill Lynch, highlighted the "pent-up demand" for H&M's US e-commerce business, which is due to launch in 2013.
He added: "Although there is a risk that H&M has to make higher than expected further investments in its offer, gross margin should benefit from lower raw material costs in H1 and from the recent strength in the euro vs the US dollar in H2."
A month after unveiling its new five-year growth plan, VF Corporation chairman and CEO Eric Wiseman said the company was "right on track" when unveiling a healthy set of second quarter results....
The Indian apparel industry has made progress with backward integration over the last five years, but needs to reorganise to play to its strengths, a conference was told last week. And if India does i...
UK click & collect purchases are expected to grow by more than two-thirds to be worth over GBP4bn (US$6.1bn) in 2018, according a new study. ...
The International Organization for Standardization (ISO) plans to develop a new standard for global occupational health and safety (OH&S) following the recent Rana Plaza building collapse in Banglades...
Retailers involved in the recent Bangladesh apparel factory tragedies are being called on to attend meetings to discuss compensation for victims. ...
Fifth & Pacific Companies is reportedly in late-stage talks to sell its Lucky brand to private equity firm Advent International for an undisclosed sum....
- TPP tariff phase-out guides Vietnam sourcing plans
- Why fast fashion isn't a case of one size fits all
- How Central America garment sourcing measures up
- How virtual garments could shape fashion retail
- Where next for Walmart's 3D apparel design pilot?
- Ethiopia opens flagship textile and apparel park
- VF confident on "solid" sustainability roadmap
- Inditex and Lenzing sign textile waste pact
- VF Corp cuts guidance as Q2 profit plunges 70%
- EU and US dispute China raw materials duties
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- World Textile and Apparel Trade and Production Trends: the EU - June 2016
- Luxury Goods Retailing in Europe, 2014-2019 ; Market & Category Expenditure and Forecasts, Trends, and Competitive Landscape
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis