Swedish multinational retail-clothing company H&M
announced its financial results for the first half year of fiscal 2012. Gross profit for the group for the first six months increased 12 per cent to SEK 35,083 million (US$5 billion or over Rs 27,000 crores) from SEK 31,231 million (US$ 4.4 billion or over Rs 24,000 crores) for the same period last year. The operating profit was reported as SEK 10,419 million (US$ 1.4 billion or about Rs 7800 crores). Profit after financial items amounted to SEK 10,754 million (US$1.5 billion or over Rs 8,000 crores) from SEK 9,290 million (US$ 1.3 billion or over Rs 7000 crores) with an increase of 16 per cent. H&M Group’s sales including VAT increased by 12 per cent in local currencies in the first six months of the financial year. Sales in comparable units increased by three per cent. Sales excluding VAT soared 14 per cent to SEK 59,491 million (US$ 7.8 billion or over Rs 43,577 crores) compared to SEK 52,135 million (US$ 7.4 billion or Rs 41,343 crores) last year.
For the second quarter, H&M reported its gross profit to have increased by 15 per cent to SEK 19,546 million (US$2.8 billion or over Rs 15,600 crores) from SEK 17,057 million (US$ 2.4 billion or over Rs 13,400 crores) in the previous year. Operating profit for the period was SEK 6,893 million (US$9881 million or Rs 5,500 crores). Profit after financial items increased 23 per cent to SEK 7,053 million (US$ 1.01 billion or Rs 5,642 crores) from SEK 5,752 million (US$ 8245 million or over Rs 4,600 crores) last year. For second quarter, group’s sales including VAT increased by 12 per cent in local currencies. Sales in comparable units increased by two per cent. Sales excluding VAT grew by 15 per cent to SEK 31,658 million (US$ 4.5 billion or over Rs 25,000 crores) from SEK 27,632 million (US$ 3.8 billion or over Rs 21,000 crores) last year.
The Group opened 119 stores and closed 16 stores during the first half-year. In 2012, the group plans to enter five new markets like Bulgaria (opened in March), Mexico, Latvia, Malaysia and, via franchise, Thailand. In addition to the five new markets, H&M plans to open stores in several new markets in 2013. The markets where store contracts for 2013 have so far been signed are Estonia and Indonesia. Group’s consolidated total assets as per 31 May 2012 increased seven per cent to SEK 51,044 million (US$ 7.3 billion or over Rs 40,000 crores) compared to SEK 47,626 million (US$ 6.8 billion or over Rs 37,000 crores) to the same time the previous year.
H & M was founded in Sweden in 1947. The H&M Group has more than 2,500 stores in 44 markets including franchise markets.