H&M Profits climb by 21% due to large expansion

Swedish clothing retailer Hennes & Mauritz (H&M) has announced that their profits have risen by a huge 21% in their final quarter of 2009 to 30 November.  This has been due to the opening of 250 new stores throughout the year, 25 more than originally envisaged.

Those 3 months saw profits hit 6.2 billion kroner (£524m), an increase from 5.1 billion the previous year.  This was in spite of the fact that like-for-like sales fell by 6% in the period.

A statement from H&M representative said that the weak sales figures were due to a ‘mild autumn’ that they claim affected the sales of key products at that time such as coats and heavy knitwear.  They have also stated that they are positive about the coming year with further expansion planned with 240 more stores being opened, taking the total number to around 2230 stores worldwide.

More good news for the company came in the fact that overall net profit for the year was up by 7% as well as pre tax sales also rising by 15% to 16.4 billion kroner.

Further plans for the new year include entering the Israeli market with plans in place to open outlets in Tel Aviv, Jerusalem and Haifa.

Posted at 03:26PM Jan 28, 2010 by Kris Wigfield in The Economy  |  Comments[0]