H&M speeds up their world expansion. Approximately 400 new stores are planned to open in 2015. Switzerland and Russia will become new online markets during autumn 2015.
The third quarter was affected by a strong dollar and the European weather.
”When the weather became more normal in September, sales took off again,” says CEO Karl-Johan Persson.
“So far this year our sales have exceeded SEK 153 billion including VAT, an increase of more than 20 percent – an acknowledgement that our collections are well appreciated worldwide. Sales were also good in the third quarter even though sales in August were negatively affected by the unseasonably warm weather in many of our large European markets. When the weather became more normal in September, sales took off again and we are looking forward to an exciting fashion autumn.” comments CEO Karl-Johan Persson.
The H&M group’s sales in SEK excluding VAT increased by 19 percent to 46,024 MSEK (38,805) during the third quarter. In local currencies the increase was 11 percent. Sales including VAT in the period 1 September – 22 September 2015 increased by 12 percent in local currencies compared to the same period last year.
Totally, the H&M group’s sales excluding VAT increased by 22 percent to 132,167 MSEK (108,775) during the first nine months of the financial year. In local currencies the increase was 12 percent.
Profits in the third quarter, was on the same level as last year, but were negatively affected by increased purchasing costs due to the strong US dollar.
Karl-Johan Persson says the new concept H&M Beauty that was launched during the summer has enjoyed a very good start in around 700 stores in 28 markets as well as online. H&M is now continuing the roll-out to a further 14 markets during the autumn.
”Our online roll-out to new countries is continuing according to plan. We will open our H&M online store in both Switzerland and Russia during this autumn, giving us 23 H&M online markets at the end of the financial year. In 2016 we plan to offer e-commerce in a further nine existing H&M markets. These countries will be Ireland, Japan, Greece, Croatia, Slovenia, Estonia, Latvia, Lithuania and Luxembourg.”
In the fourth quarter H&M will open approximately 240 new stores – which is almost three new stores per day. India and South Africa will become two new countries. Next year, H&M plan to open stores in three new markets: New Zealand, Cyprus and Puerto Rico.
”Our other brands are performing well and are continuing to reach out to more and more customers. For example, COS now has around 130 stores across 27 markets, Monki more than 90 stores in 13 markets, & Other Stories 25 stores in 10 markets and Weekday 20 stores in five markets.” says Karl-Johan Persson.