H&M Ireland sees profit halve in 2015

The Irish subsidiary of Swedish fashion group Hennes & Mauritz (H&M Hennes & Mauritz Ireland Limited), reported 2.1 million euros pre-tax profit on a steady turnover (+ 21 percent) of 91.4 million euros.

H&M Ireland saw profits more than halve last year, reported the ‘Irish Times’, citing the accounts lodged with the Companies Registration Office to which the paper has access. The company recorded a pretax profit of 2.1 million euros for the 12 months to November 30, 2015, nearly half of the 4.2 million euros profit it booked a year earlier.

On the upside, turnover increased to 91.4 million euros from 75.4 million over the period, while like-for-like sales also improved, adding a 5 percent.

“The directors believe the business performed well considering the challenging retail environment in 2015,” H&M said, summarising the company´s performance in the Irish market.

The gross profit margin percentage decreased from 51.5 per cent in the prior year to 47.6 per cent in 2015 due to increased buying prices for goods arising from a strengthening dollar.

The company has 17 H&M stores in Ireland, including a flagship outlet on College Green, which opened in late 2014. It also operates five Cos branded shops and one stand-alone Cos outlet here.

“The directors aim to maintain growth in competitive market conditions and will continue to look for ideal locations for new stores,” the company said.

The accounts show the Irish subsidiary transferred 2.89 million euros to a holding company, H&M Hennes & Mauritz GBC AB, last year. It incurred charges of 6.59 million euros from fellow group companies for management services and charged a total of 1.27 million euros for services it provided to other units, added the ‘Irish Times’.