H&M is growing and, importantly, India’s contribution to the brand’s growth cannot be overlooked.
In an ever-changing fashion industry, the H&M group continued to grow globally in 2019. During the 1 December 2018 – 30 November 2019 period, the Group’s net sales increased by 11 per cent to clock SEK 232,755 m (210,400). In local currencies, net sales increased by 6 per cent.
The Group’s overall net sales during Q4 (1 September 2019 – 30 November 2019) rose by 9 per cent. Here it’s imperative to note that in India sales surged by a whopping 33 per cent in local currency, which is highest compared to any other market for the brand.
With regard to full year, the Swedish fashion giant saw a growth of 35 per cent in India (in Indian currencies).
H&M’s upgraded customer loyalty programme now has more than 65 million members in 19 markets and will continue to be rolled out to additional markets in 2020, including India. The company opened 8 new stores in India during its financial year and now has a total of 47 stores in India.
Meanwhile, the company has announced that Stefan Persson will step down as Chairman of the Board of H&M and Karl-Johan Persson, who has been CEO for more than 10 years, will succeed him. Helena Helmersson has been appointed new CEO.
And there’s quite a few more from H&M!
- The company hasannounced that Australia is scheduled to become a new H&M online market in the second half of 2020.
- H&M will be launched on the e-commerce platform SSG.COM in South Korea in 2020.
- An agreement has been signed with a new franchise partner in Central America.
- H&Mplans to open its first store in Panama by the end of 2020.
Speaking about H&M’s impressive performance, Karl-Johan Persson, CEO, H&M, said “The H&M Group’s transformation work continues to bear fruit. Increased full-price sales and decreased markdowns contributed to an improvement in profit for the full year and in the fourth quarter, when we achieved a 25 per cent increase in operating profit while maintaining a high level of activity in our transformation work.”
Karl-Johan added “It is clear from our well-received collections and increased market share that customers appreciate the initiatives we have taken. The composition and level of the stock-in-trade continue to improve, and we expect a decrease in markdowns again in the first quarter – for the sixth successive quarter.”
Stefan Persson said “It is a natural change, after 20 years as Chairman. I will continue to be a committed owner, just as today, but from a different position. In addition, the timing is favourable for making this change now since we have gradually improved profits and have a strong position with many well-established brands, millions of customers worldwide and good financial strength.”
Helena Helmersson, working in various roles with H&M for more than 2 decades, has been COO of the company.
Over the years, the CEO and the CFO have always worked very closely together. Karl-Johan Persson has therefore asked Jyrki Tervonen, CFO of the H&M group since 2008, to become CEO at Ramsbury Invest, which is formally the parent company of H&M Hennes & Mauritz AB. Jyrki Tervonen will take up his new position at Ramsbury on 1 July 2020.
Adam Karlsson, currently Head of Controlling at the H&M brand, will take over as CFO for the H&M group. Adam has worked within the H&M group since 2003. Karl-Johan Persson and Jyrki Tervonen will ensure a smooth transition until they assume their new positions.
