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H&M witnesses sale rise of 9 percent in 2013

By FashionUnited

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Fashion

REPORT_ In its annual report published today, Hennes & Mauritz (H&M) said that its sales including VAT increased by 9 percent, in local currencies, for the financial year 2013. Sales in comparable units were unchanged. Converted into Swedish Krona sales including VAT increased to 1,50,090 million

Swedish Krona (23, 292 million dollars).

Sales excluding VAT increased to 1,28,562 million Swedish Krona (19,951 million dollars), an increase of 6 percent. The group’s gross profit for the 2013 financial year amounted to 76,033 million Swedish Krona (1,179.9 million dollars), an increase of 6 percent. This corresponds to a gross margin of 59.1 percent.

The year ended with strong sales development. Even if several markets were characterized by the prevailing challenging macroeconomic situation and multiple price activities and markdowns in many markets, H&M continued to grow with continued high profitability and increasing market share. The group’s online sales, which developed well during the year, are a very important complement to the stores. A completely mobile- e-adapted H&M shop online was launched at the beginning of the year and H&M’s online sales were launched in the US in August.

“Our attractive customer offering and well-received collections par ticularly during the autumn meant that we ended the year strongly. Overall during 2013 we increased sales by 9 percent in local currencies. The result was affected by negative currency translation effects and by the continued, long-term investments we are making to build an even stronger H&M and secure future expansion.” opined Karl-Johan Persson, CEO, H&M, commenting on the group’s financial performance.

In 2013, H&M opened more than one new store per day; and today it has over 3,200 stores in five continents, and its online store hm.com is now available in nine countries including the US. The Group also expanded through its brands, Cheap Monday, COS, Monki, Weekday and & Other Stories, launched in spring 2013.

H&M