Swedish retail brand H&M recently disclosed its full year revenue report. A surge of 5 percent was witnessed in its full year revenues, whereas in local currencies net sales improved by 3 per cent. However, profits fell by 21.8 per cent from the same period last year.
“Against a backdrop of rapid changes in the fashion industry, in 2018 we accelerated our transformation to future proof our business, ending a challenging year for the H&M group and the sector with strong signals that we are on track. While this performance is still somehow off the targets that we set at the beginning of 2018, these positive signals confirm we are making progress across all our strategic focus areas.” – Karl-Johan Persson, CEO, H&M
It is worth noting that the company’s sales in FY 18 was 2,10,400 million Swedish Krona, up from 2,00,004 million Swedish Krona a year earlier. Net profit declined to 12,652 million Swedish Krona and the net profit margin reduced to 6 per cent as compared to 8.1 percent a year ago.
For the final quarter, group’s net sales increased by 12 per cent to 56,414 million Swedish Krona while in local currencies net sales were up by 6 per cent. Besides this, the profit after financial items amounted to 4,352 million Swedish Krona compared to 4,873 million Swedish Krona last year. Profit after tax amounted to 3,543 million Swedish Krona against 3,993 millions Swedish Krona in the fourth quarter last year.
“To create the best customer experience, we continue to invest in logistics and tech infrastructure. We opened three new fulfilment centres in the fourth quarter with a total of around 2,30,000 square metres. This means we can offer customers faster deliveries and a wider assortment while reducing the capacity constraints that slowed us down in some markets in 2018.” – Karl-Johan Persson, CEO, H&M
Founded in 1946 by Erling Persson and headquartered in Stockholm, Sweden, the H&M group through its nine brands — H&M, Cos, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home, Arket and Afound, offers a wide variety of trendy fashion, beauty, accessories and homewares.
