H&M quarterly profits down

In the wake of announcing its Matthew Williamson collaboration, H&M this week reported a drop in sales of 5 per cent in local currencies. In February 2009, sales including VAT in local currencies increased by 1 percent compared to the same month last year. Sales in comparable units decreased by 8 percent. Negative calendar effects in February are estimated to have affected sales by 4-5 percentage units. The sales development in February should be seen in the light of the fact that the increase in February 2008 was 24 percent compared to the year before.

Sales excluding VAT for the H&M Group for the first three months of the financial year amounted to SEK 23,299 m (19,742), an increase of 18 percent. In local currencies the increase was 4 percent. Sales including VAT amounted to SEK 27,282 m (23,241).

The Group opened 13 stores during the first quarter and 3 stores were closed. The total number of stores in the Group as per 28 February 2009 thus amounted to 1,748 of which 22 are franchise stores.