H&M profits increase on the back of improved online sales and brand development
Profits at fashion giant H&M increased by almost 10pc to SEK 7.7bn (€793m) in the three months to 31 May 2017, according to the group’s latest financial statement.
The development of its online sales platform, greater cost control, as well as the strong perform of H&M’s other brands including COS, & Other Stories, Monki, and H&M home were the main factors behind the growth.
Sales at the Swedish multinational were up 10pc to SEK 59.5bn (€6.1bn), with online sales accounting for between 25pc and 30pc of total sales in some of its more established markets.
The profitability of the group’s online sales was in line with that of the physical stores the company said.
H&M, which is the second largest fashion retailer behind Inditex, the company behind Zara, confirmed that it had opened online stores in a further six markets during the spring – Turkey, Taiwan, Hong Kong, Macu, Singapore, and Malaysia.
The retailer now has an online presence in 41 markets worldwide, and the company said that it expects its online sales to grow by at least 25pc going forwards.
“H&M’s online sales developed very well and continued to increase its share of total sales. The development of COS, & Other Stories, Monki, Weekday and H&M Home remained very strong, both in stores and online,” Karl-Johan Persson, CEO of H&M said.
However, the company did note that it experienced challenges in a number of markets including the US, China, the Netherlands and Switzerland.