H&M to expand empire
Steady growth for fashion retailer
January 29 2004
Swedish fashion retailer Hennes & Mauritz plans to expands its reach on both the eastern and western front at the end of a year in which the business saw solid growth despite being hit by a slowdown in clothing sales over recent months.
H&M said 2004 will see 140 stores open in total, including five stores in Canada and two in Slovenia, both new markets for the retailer. The company has also previously announced for up to 25 new stores in Germany this year, its biggest market outside Sweden.
[img r]H&Mstore2.jpg[/img]Total store numbers stood at 945 at the end of the financial year. Across 2003, 21 stores opened in both Germany and the USA, 11 each in the UK and in France, nine each in Spain and Sweden, and six in Poland.
Poland, the Czech Republic, Portugal and Italy were all new markets for H&M in 2003, with the group saying its new stores performed “above expectations with very satisfactory sales”. H&M has successfully streamlined its store opening process, with neighbouring countries supplying products to stores.
Across the year to November 30, group turnover grew by 6 per cent to SEK 56,550m. Hit by currency fluctuations, and constant exchange rates the increase was 9 per cent. Profit after tax increased by 12 per cent.
H&M confirmed that sales growth slowed in the fourth quarter, with turnover up 2 per cent, or 7 per cent at comparable exchange, to SEK 16,316m. The company said sales across the quarter were ‘weak’, with outdoor wear and heavy knitwear underperforming. Retail prices were 4 to 5 per cent lower than a year earlier.
