H&M Expansion Drive Profit

Swedish retailer H&M have reported turnover for the half-year was up 8 per cent to GBP1.8bn) as the group continued with its store expansion plans.

During the six months the company opened 57 stores, including seven in the UK, and during the rest of the fiscal year planned to open more than 80 stores across Europe and in the US.

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24 June 2004

H&M Boost Faster Fashion

Fast-fashion retailer H&M is splitting its buying and production functions in a move to revitalise its sales growth and further boost the speed at which it gets products into stores.

H&M, which has seen a slowdown in its rate of sales growth over the past few months, is promoting Madeleine Persson to the post of buying director. Persson, 35, has worked in buying and sales for ten years at H&M, including a stint managing the youth department.

H&M sources all its garments through third party suppliers, with around 60 per cent produced in Asia and the remainder in Europe. All are created by H&M's own designers.

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28 May 2004

No Spring Break For H&M

Swedish high street retailer Hennes & Mauritz reported a dip in sales growth for March, at 7 per cent compared to 14 per cent in January and 13 per cent in February. The late arrival of spring weather has hit sales growth at the popular retailers.

The company currently operates more than 950 stores, with openings scheduled for Germany, the UK, Poland Spain and Norway during the current quarter.

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15 April 2004

H&M To Expand

High street retailer Hennes & Mauritz plans to open 51 shops, with the biggest part of the expansion taking place in Germany with eight openings, the UK and Poland with six each, Spain with five openings and Norway with 4 openings.

The H&M Group has further acquired the American clothing chain GAP's German subsidiary. H&M Group takes over all of GAP's 10 stores in Germany including employees. Take-over date is August 1, 2004. The store will be converted into H&M-stores with expected opening under H&M management during the autumn. During 2004, approximately 140 new stores will be opened and ten will close.

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29 March 2004

H&M Q3 turnover increase of 9 per cent

Total turnover excluding VAT for the H&M Group increased by 9 per cent during the first quarter (12 per cent with comparable exchange rates) and amounted to SEK 11,756.1 m (10,770.6). Turnover including VAT was SEK 13,807.0 m (12,635.7).

Turnover increase in the month of February was 13 per cent excluding exchange rate fluctuations. H&M opened seven stores during the first quarter, of which three were in Germany, one each in UK, Belgium, France and the USA. Four stores were closed, bringing the total number of stores to 948. During the same period last year six stores were opened and one was closed.

Profits
Gross profit amounted to SEK 6,311.4 m (5,858.2), which corresponds to a gross margin of 53.7 per cent (54.4).
After deduction of administrative and selling expenses, operating profit for the first quarter amounted to SEK 1,700.6 m (1,558.3), an increase of 9 per cent. This corresponds to an operating margin of 14.5 per cent (14.5).

Operating profit for the period has been charged with depreciation according to plan amounting to SEK 307.7 m (284.1) and start-up costs, the part of investments in new stores that is charged directly to the income statement, of SEK 49.2 m (33.8).
Group financial net interest income was SEK 87.2 m (131.1). Profit after financial items was SEK 1,787.8 m (1,689.4).
Profit after estimated tax was SEK 1,162.1 m (1,098.1), corresponding to earnings per share of SEK 1.40 (1.33).

Expansion
The Group plans to open 51 shops during the second quarter, the biggest part of the expansion takes place in Germany with eight openings, the UK and Poland with six each, Spain with five openings and Norway with 4 openings. Three shops will close during the quarter. In the corresponding period last year, 47 new stores were opened and three were closed. The H&M Group has aquired the american clothing chain GAP’s german subsidiary. H&M Group takes over all of GAP’s 10 stores in Germany including employees. Take-over date is August 1, 2004. The store will be converted into H&M-stores with expected opening under H&M management during the autumn. During 2004, approximately 140 new stores will be opened and ten will close.

Comments on the Results
The group has, during the first quarter, increased turnover by 12 per cent with comparable exchange rates. Sales price to customer on new items, has as a result of the weakening of the USdollar during the same period decreased by approximately 5 per cent, all in all the number of sold items has increased by approximately 20 per cent. The increase in selling and administration expenses has been kept at a low level during the quarter.
Gross margin for the period was 53.7 per cent (54.4). The somewhat higher reduction level was, compared to last year, partly counteracted by an underlying strengthened margin due to the weakening of the US-dollar and somewhat lowered logistic cost. Price reductions were on a historically low level.

The result of the quarter has been negatively affected by currency translation effects by SEK 36 M, compared to the same period last year. The currency translation effects arise when the results of foreign subsidiaries are translated into SEK in order to be consolidated into the H & M Group accounts.

Financial Position
Group balance sheet total increased by 5 per cent and was SEK 26,510.0 m (25,195.7). During the period, the Group generated a positive cash flow of SEK 417.2 m (74.3). The financial assets amounted to SEK 13,783.9 m (13,492.3). Stock-in-trade was SEK 5,129.8 m (4,368.0), an increase of 17 per cent (-5). SEK 254.5 m (263.0) were invested in the operations through acquisitions of fixed assets.
Group solidity was 81 per cent (79) and the share of risk-bearing capital was 85 per cent (83).
Net worth apportioned on the outstanding 827,536,000 shares on 29 February 2004,
corresponded to SEK 26.00 (24.17) per share.

The Half-Year results will be published on 23 June 2004

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25 March 2004

H&M To Expand On Global Scale

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.

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.

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29 January 2004

Christmas Slow Sales For H&M

H&M, Europe's biggest high street retailer, warned of sluggish sales in the run-up to Christmas. The alert came days after H&M's rival at the cheaper end of the European fashion market, Spanish group Zara, reported disappointing third-quarter profits and warned of slowing sales growth this year.
This reflected the situation at fashion stores across the UK and Europe, which have seen sluggish sales of the pricier winter clothes that traditionally bolster profit margins in the run-up to Christmas.

A host of British High Street names saw their share prices tumble last week after a warning from Matalan rattled confidence, while headlines about shops launching 'January' sales already has added to the air of gloom in the sector.

16 December 2003
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Autumn Profitable For H&M

Hennes & Mauritz, the fashion retailer from Sweden, reported sales growth of 10
per cent for October, beating expectations. Its the first double-digit sales growth in five months, but is still far from the 26 per cent sales rise achieved in October last year.

19 November 2003
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H&M Turnover up 10%

Swedish fashion retailer H&M saw group turnover increase by 10 per cent at comparable currency rates, with sales of GBP3,255m. Profits were up 21 per cent at GBP 507,85m across the nine months.

Turnover for the third quarter was to GBP1,059m, an increase of 7 per cent compared with last year at comparable currency rates. With H&M still expanding its store chain internationally, the increase is evidence of an increasingly competitive clothing market.

H&M said gross margin was 55.6 per cent in the third quarter, with the operating margin of 17.8 per cent the highest ever reached in the group's third quarter. Third quarter profits were GBP 167m, up 9 per cent. H&M said its autumn collections had been well received.

25 September 2003
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H&M forced to rip down sign

H&M high street fashion giant has been forced to tear down an illegal sign outside its flagship store in Princes Street.

Edinburgh City Council refused to grant retrospective planning permission for two corporate H&M signs, which had been erected illegally outside the store along the city's world-famous thoroughfare.

Now H&M has failed in an appeal to the Scottish Executive to overturn the council's decision and has been forced to remove one sign.

The H&M store occupies the ground floor of the five-storey 1966 A-listed New Club building to the west of the foot of the Mound.

Trevor Croft, a reporter for the Executive's Inquiry Reporters Unit, said in his ruling: "I consider that the signs would be damaging to visual amenity by detracting from the general streetscape. The proposed projecting sign, although relatively insignificant seen against the mass of the building, would, however, upset the relatively clean facade of the shop frontages."

2 September 2003
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H&M sales below expectations

July sales for Swedish fashion retailer Hennes&Mauritz increased by 8 per cent, matching June's performance, but falling short of analysts' expectations for six consecutive months. H&M said that the single-digit like-for-like decline in July was due to a shortage in summer clothing.

August 20 2003
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Jagger Family to Rock H&M

Jerry Hall, her 5-year-old son Gabriel, and Jade Jagger (Mick's daughter from his marriage to Bianca Jagger) and her two daughters, Amber and Assisi, will be the latest celebrities to appear in a fall campaign for fashion retailer H&M.

The effort, created in-house, will be anchored by print ads in magazines such as Cosmopolitan, Jane, Vibe, Marie Claire, Lucky, Elle and Interview. Internet and point-of-purchase worldwide and outdoor in New York will support. Campaign spending was not revealed.

"Our new fall campaign reinforces H&M's wide range of stylish, high-quality, affordable designs for the entire family," Karen Belva, public relations manager of H&M, said in a statement. "We wanted to show that you could dress stylish and hip whether you're a mom, a grandmother or a child."

Jade Jagger last modeled for H&M in the company's fall 2002 campaign. H&M also has featured Heidi Klum, Iman, Christy Turlington, Bridget Fonda, Johnny Depp, Benicio Del Toro and Claudia Schiffer in previous campaigns.

24 July 2003
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Profits up for H&M

Swedish high street success chain Hennes & Mauritz announced sales of USD 3.5bn for the first half of 2003 ending May 31, up 9% on the year previous. H1 operating profit rose 27.5% to USD 521m. Turnover for the second quarter increased 7% to USD1.68bn on like for like sales, while operating profit leapt 20% on year to USD 320m. During this period, H&M broadened its European base in Poland, the Czech Republic and Portugal.

H&M currently offers private label beauty products in select stores in addition to some mass brands. "Beauty is a small percentage of our turnover, but is important as is it very much linked to fashion," H&M investor relations manager Carl-Henric Enhörning tells Cosmeticnews.com. "In the future, we plan to have it in all of our stores."

H&M plans to open a further 60 stores by the year's end, mainly in the UK, Germany, the US, and Spain, the company said in a statement. In H1 2003, the company closed four stores, but opened 11 in the US and 42 in Europe, bringing its worldwide total to 893.

20 June 2003
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Iman poses for H&M

The 47-year-old supermodel Iman is the new face of Swedish discount retailer H&M. In recent years the former supermodels role as wife and mother and whose extensive charitable interests have taken over from her modelling career. She doesn't want to model anymore even though she has long been a favourite of fashion's most celebrated photographers including Peter Lindbergh, Bruce Weber, David Bailey and the late Herb Ritts.

Vogue reports she even surprised herself by following in the footsteps of Claudia Schiffer, Christy Turlington and Pamela Anderson and appearing on billboards for the international high street chain. "Richard Avedon was shooting it," she said, "I don't want to model anymore, but Avedon asked me to do it."
For H&M's ethnic-inspired spring/summer collection, however, she was the first choice.

April 25, 2003
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H&M beats Q1 expectations

Popular Swedish fashion retailer Hennes & Mauritz reported better-than-expected first-quarter profits this week, lifted in part by fewer price cuts on its clothing. The retailer reported a net profit for the quarter ended February 28 of nearly SEK 1.1 billion (GBP 82 million) up from SEK 767.2 million (GBP 58.2m) in the same period a year earlier.

Sales rose to SEK12.6 billion (GBP 96m) compared to SEK 11.2 billion (GBP 85m) a year earlier, in line with the retailer's target of annual sales growth between 10 percent and 15 percent. H&M gets nearly 90 percent of its sales from outside of Sweden.

H&M, known for its inexpensive but trendy clothing, operates 849 stores in 14 countries and employs more than 25,670 workers.

Earlier this year, the company said it would open 110 more stores in Europe and the United States in 2003. In the second quarter, it will open 47 stores and close three.

The company also is expanding its presence in Eastern Europe, opening five stores in Poland and three in the Czech Republic this year.

March 27, 2003
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H&M goes to Italy

Sweden-based retail chain Hennes & Mauritz (H&M) will enter Italy in September 2003. H&M's first Italian store, to be located in central Milan, will feature a cosmetics offer. The retailer said that additional stores are in the pipeline for 2004.

H&M is currently present in Austria, Belgium, Denmark, Finland, France, Germany, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, the Czech Republic, the UK and the US.

March 13, 2003
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Good January sales for H&M

Clothing retailer Hennes & Mauritz (H&M) on Monday reported January sales growth of eighteen percent year-on-year, near the top of the range of analyst forecasts. H&M, which is based in Sweden and one of the world's biggest fashion retailers, had been expected to report a seventeen percent year-on-year sales boost.

A year ago H&M posted an eight percent rise in sales, making January its worst month in 2002 mainly due to bad weather, even though the gross margin improved thanks to de-stocking. Since January last year, H&M has added 111 news stores for a total of 844. In the United States, a key expansion market for the company, its operations turned profitable.

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February 18, 2003

50% profit surge for H&M

Fashion retailer Hennes & Mauritz has posted another record year. On Wednesday the Swedish company reported a 50 per cent rise in profits for the year ended on November 30, 2002, and said it will open a total of 110 new stores this year. The fourth quarter was especially strong with profits rising 44 per cent.

Turnover for the H&M Group increased during the year by 15 per cent compared with last year and amounted to SEK 53,331.7 m (46,528.2 in 2001). Turnover in the fourth quarter was SEK 15,962.7 m (14,172.0), an increase of 13 per cent.

"The strong result improvement has been achieved through well received collections above all and through further improved purchasing and logistic processes," the company said in a statement. "H&M has increased focus on optimising volumes and lead times. This has resulted in a more even flow of goods and thereby an increased part of new garments in the stores every day. A larger part of purchases currently during the season, especially of garments with a high degree of fashion, has also meant a higher accuracy in the fashion. All this together has lead to increased sales of merchandise at full price, which among other things reflects in the high gross margin."

During the exceptionally strong fourth quarter these factors have had full effect. The result corresponds to a gross margin of 58.0 per cent (54.7) and an operating margin of 24.1 per cent (18.9). These margins are the highest H&M has attained in a single quarter.

In 2003, 110 stores are planned to open, of which twelve on the new markets Poland, the Czech Republic and Portugal. Leases have been signed for five stores in Toronto, Canada. The stores will open in 2004. Last year 85 stores were opened and twelve have been closed. Group number of H&M stores thereby amounted to 844 (771) on 30 November 2002.

January 30, 2003
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More expansion plans H&M

Swedish retailer Hennes & Mauritz L.P. (H&M) that is known for inexpensive, cutting-edge fashion, is expanding its search for store sites in the US. The company is already looking beyond the city of Chicago to the suburbs, as was reported to a local newspaper this week.

H&M officials said they could open suburban stores around Chicago as early as next year, but declined to say how many. Real estate sources stated the retailer is focusing its search on several malls. H&M is planning to open its first Chicago store this fall, which will followed shortly by a second one.

January 25, 2003
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H&M rolls out in US

Successful retail chain Hennes & Mauritz (H&M) has confirmed that the company plans to develop beyond the East Coast of the United States. The Sweden-based chain opened its first store in New York in 2000 and has opened 40 stores since. These are all located in the North-Eastern part of the country. Next year H&M plans to roll out its concept to the middle of the United States with the planed opening of a store in the 'windy city' of Chicago. But until now no exact date of location has been confirmed.

This move will fall under jurisdiction of recently appointed Sanna Lindberg as country manager for all H&M US operations. Lindberg, who will replace Peter Grauers during the summer of 2003, will take on the mission to boost sales in the country. In the US, H&M carries its own-brand cosmetics line.

November 15, 2002
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H&M launch H&M detail-format

Swedish fashion retailer Hennes & Mauritz will soon start with a new retail concept by the name of "H&M Detail". The Stockholm-based company will launch a store chain that only sells lingerie, accessories and cosmetics and targets trend conscious women in search of "something special".

The first two H&M Detail stores will open in Germany, in Cologne and Oberhausen in November and will have a "warm and feminine atmosphere" as well as a "touch of Asia", a H&M spokeswoman said. The collection will differ noticeably from the company's usual lingerie and accessories product range and include a lot of lace, prints and border details.

October 7, 2002
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H&M reports strong growth

Strong growth numbers for fashion giant Hennes & Maurits. During a period when just about every retail organization reports vast losses, H&M has improved its results in every single country it operates in. For the first nine months of 2002, H&M Group turnover amounted to SEK 37,369 million, which is an increase of 15% (14% in local currency rates). Company turnover for the third quarter alone amounted to SEK 12,664 million an increase of 15% as well. In comparable currency rates the Q3 increase was 17%.

H&M has again improved results in all countries and points out very positive developments in France,
the USA and Spain. In France alone the company saw its turnover increase by 34% in local currency. In the reported nine months period, the Group has opened 46 new stores; ten in Germany, nine in France, seven in the USA, five each in the United Kingdom and Austria, three in Belgium, two in the Netherlands and one in Sweden, Norway, Denmark, Finland and Luxembourg respectively. Closing of five stores in Germany and one each in the UK, Switzerland and Belgium, the total number of stores at the end of the period was 809.

H&M is expanding its retail operation even further and plans to open 39 stores in the fourth quarter alone. Four will be closed down. The largest number of stores will open in Germany, where nine stores are planned, and in the USA and Spain, where eight stores are planned to open in each country. For the USA this means that a total of 15 stores will be opened during the year.

09-19-02
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New H&M-store in Harlem, NY

Sweden's retailer H&M has set up shop in Harlem, New York this week, a move that may benefit the developing neighbourhood. This storied neighbourhood still has signs of a deteriorated inner city, but it is becoming a trendy place to live and do business. H&M is not the first sign of Harlem's recent commercial revitalization, but it is striking for a retailer of its proportions. The company's decision to open in Harlem was "all about location," according to spokeswoman Karen Belva. H&M saw an opportunity to sell in a high-traffic part of a community that has a strong interest in fashion.

The first American H&M became an immediate hit when it opened in 2000 on Manhattan's Fifth Ave. Velvet ropes were required to control crowds that are now typical at openings. The touristy Fifth Ave. store is notorious for big crowds and long waits. The newer stores in Herald Square and SoHo can get just as cramped. The U.S. expansion has been rocky in other ways, industry analysts say. According to Goldman Sachs research published last week, the company made early missteps with real estate, and the menswear business "has so far proved unsuccessful." Menswear is excluded from the Harlem store, which has women's, children's, maternity, plus-sized clothes and lingerie.

Meanwhile, Harlem residents are confident that the store will benefit the neighborhood. On Friday, the store gave away T-shirts that said "HarleM", with the H and M highlighted in red, in exchange for donations to a local elementary school music program.

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09-09-02

Sales rise H&M

Hennes & Mauritz, one of the world's largest fashion retailers posted an 18% year-on-year jump in monthly sales on Thursday but did not reveal figures in financial terms.
The operator of more than 800 outlets in 14 countries said in a statement that same-store sales rose 8% last month. Analysts were pleased with the results which follow a 19% climb in monthly sales in June.

H&M will open 6 more stores in the UK by Christmas as part of its bid to have more than 150 outlets across the country. It currently operates 63 stores in Britain and saw UK sales jump 35 per cent in the first half. The new stores will be in Stratford-upon-Avon, Romford, Lakeside, Edinburgh, Leeds and Basingstoke.

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08-15-02

H&M beats expectations in first quarter

Hennes & Mauritz beat market expectations in sales and profits in the first quarter ended 28 February 2002. The company's worldwide turnover increased by 17 per cent to EUR 1.23 billion. On a constant currency basis, turnover was up by 11 per cent on the earlier-year period. During 2002, approximately 90 new stores will be opened.

Gross profit increased by 35 per cent. Gross margin was 52.9 per cent (45.8).
Profit after financial items amounted to SEK 1,180 m (571), an increase of 107 per cent.
Improved result in all countries compared to the previous year.
Profit per share after estimated tax was SEK -.93 (-.45).
Sales development for the month of February was 16 per cent with comparable exchange rates.

Turnover
Totalturnover including VAT for the H&M Group increased by 17 per cent during the first quarter (11 per cent with comparable exchange rates) and amounted to SEK 11,245.8 m (9,633.6). Turnover increase in the month of February was 16 per cent excluding exchange rate fluctuations. H&M opened seven stores during the first quarter, of which two in the USA, the UK and one France. Two stores were closed, bringing the total number of stores to 776. During the same period last year six stores were opened and one was closed. Sales outside Sweden accounted for 89 per cent (87).

Profits
Gross profit amounted to SEK 71.9 m (3,759.0), which corresponds to a gross margin of 52.9 per cent (45.8). After deduction of administrative and selling exenses, operating profit for the first quarter amounted to SEK 1,101.4 m (500.9). This corresponds to an operating margin of 11.5 percent (6.1). Operating profit for the period has been charged with depreciation according to plan amounting to SEK 271.0 m (211.4) and start-up costs, the part of invtments in new stores that is charged directly to the income statement, of SEK 25.0 m (40.0). After depreciation but before start-up costs, operating margin amounted to 11.8 per cent (6.6). Group financial net interest income was SEK 78.9 m (69.8). Profit after financialitems was SEK 1,180.3 m (570.7), an increase of 107 per cent. Profit after estimated tax was SEK 767.2 m (371.0), corresponding to earnings per share of SEK 0.93 (0.45).
Return on shareholders equity (revolving 12 months) was 29.8 per cent (21.5) and return on capital employed (revolving 12 months) was 44.3 percent (33.4).

Comments on the Results
Planned lower stock-in-trade compared with last year has resulted in considerably lower price reductions and thereby a substantially increased gross margin. Operating result has improved in all countries compared with the previous year. The result before tax for the first quarter has been positively affected by currency translations effects as a resultof the weakened SEK of slightly more than SEK 50 m compared with last year.

Strong Financial Position
Group balance sheet total increased by 26 per cent and was SEK 20,827.3 m (16,493.4). During the period, the Group generated a positive cash flow of SEK 491.7 m (140.0). The financial assets amounted to SEK 8,759.8 m (5,663.0). Stock-in-trade was SEK 4,587.4 m (4,855.4), a decrease ofsix per cent. SEK 340.3 m (291.2) were invested in the operation through acquisitions of f
ixed assets. Group solidity was 76 per cent (76) and the share of risk-bearing capital was 78 per cent (80). Net worth ppor
tioned on the outstanding 827,536,000 shares on 28 February 2001, corresponded to SEK 19.09 (15.10) per share. Continued pansion Expansion continues and during the second quarter 26 stores are planned to open. Of these openings, 7 will be in the ermany, six in France, two each in the UK, the Netherlands, Belgium, Austria and the USA. In Norway, Denmark and Finland one store per country will be opened. In the corresponding perid last year, 43 new stores were opened. During 2002, approximately 90 new stores will be opened.
26-3-2002
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Hennes & Mauritz marketshare rises

FULL YEAR RESULTS
1 December 2000 to 30 November 2001

Group turnover for the year amounted to SEK 46,528 M (5.118 miljoen Euro) including VAT, an increase of 30 per cent compared to last year. With comparable exchange rates, the increase was 20 per cent.

Profit after financial items was SEK 5,734 M (4,003), an increase of 43 per cent.

Turnover for the fourth quarter amounted to SEK 14,172 M (10,448) including VAT, an increase of 36 per cent. With comparable exchange rates, the increase was 24 per cent.

Profit after financial items for the fourth quarter was SEK 2,356 M (1,390), an increase of 69 per cent.

Increased market shares in all H&M countries.

In 2002, approximately 90 new stores are planned to open. The USA continued important market for expansion. Somewhat lower expansion rate on the American market than originally planned.

The Board of Directors proposes a dividend of SEK 1.75 (1.35) per share. .

30-01-2002
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