H&M pushing into new markets
Swedish fashion retailer pushes profits up
June 18 2003
The H&M fashion phenomenon continues to sweep the world, with Poland, The Czech Republic and Portugal the latest countries to fall.
New stores in all three countries contributed to a further period of growth for the Swedish clothing retailer in the six months to the end of May, with a total of 53 new stores bringing the global total to 893.
The new openings included 11 stores in the UK, eight in Germany, and seven each in the UK and France. The company said the reception to its offer from customers in the three new countries has surpassed expectations.
Total turnover for the H&M Group increased by 9 per cent to SEK 27,025m, with half-year profits up 28 per cent to SEK 4,256m
H&M said there was a weaker second quarter in some countries due to a colder spring, but its focus on stock levels kept the need for price reduction to a minimum, with margins increasing in all markets.
Highlights of H&M’s offer during the half included a range of swimwear modelled by supermodel Heidi Klum.
However, H&M is to face increased competition on its home territory. Another European empire builder, Spanish fashion retailer Zara, is to open its first store in Sweden.
