H&M reports 12 % growth in half year gross profit

Swedish multinational retail-clothing company H&M announced its financial results for the first half year of fiscal 2012. Gross profit for the group for the first six months increased 12 per cent to SEK 35,083 million from SEK 31,231 million for the same period last year. The operating profit was reported as SEK 10,419 million. Profit after financial items amounted to SEK 10,754 million from SEK 9,290 million with an increase of 16 per cent. H&M Group’s sales including VAT increased by 12 per cent in local currencies in the first six months of the financial year. Sales in comparable units increased by three per cent. Sales excluding VAT soared 14 per cent to SEK 59,491 million compared to SEK 52,135 million last year.

For the second quarter, H&M reported its gross profit to have increased by 15 per cent to SEK 19,546 million from SEK 17,057 million in the previous year. Operating profit for the period was SEK 6,893 million. Profit after financial items increased 23 per cent to SEK 7,053 million from SEK 5,752 million last year. For second quarter, group’s sales including VAT increased by 12 per cent in local currencies. Sales in comparable units increased by two per cent. Sales excluding VAT grew by 15 per cent to SEK 31,658 million from SEK 27,632 million last year.

The Group opened 119 stores and closed 16 stores during the first half-year. In 2012, the group plans to enter five new markets like Bulgaria (opened in March), Mexico, Latvia, Malaysia and, via franchise, Thailand. In addition to the five new markets, H&M plans to open stores in several new markets in 2013. The markets where store contracts for 2013 have so far been signed are Estonia and Indonesia. Group’s consolidated total assets as per 31 May 2012 increased seven per cent to SEK 51,044 million compared to SEK 47,626 million to the same time the previous year.

H&M was founded in Sweden in 1947. The H&M Group has more than 2,500 stores in 44 countries. This includes franchise stores.