H&M sees profits jump
Healthy fourth quarter for fashion retailer
Hennes & Mauritz has reported a 22 per cent increase in fourth quarter earnings, boosted by the weak dollar that has lowered its prices and increased full-year profits.
The Swedish fashion retailer reported fourth quarter profits of SEK 2.76 bn, around €304m, with sales up 14 per cent to to SEK 15.9 bn. The company enjoyed strong November sales thanks to strong demand for its limited edition range designed by Karl Lagerfeld.
For the full year, sales increased by 11 per cent to SEK 53.7bn, or €5.9bn. H&M said: “A weaker dollar and an improved production control have led to lower prices to customers and to an increased gross profit.”
H&M, which has more than 1,000 stores around the world, entered the Canadian and Slovenian markets during the year, and continued to expand in Poland, the Czech Republic, Portugal and Italy.
During the year, it will open up to 155 stores and close 12. The openings will include three stores in Ireland and one in Hungary, both new markets for the group.
