Skip to main content

H&M profits jump sevenfold as it aims to double sales by 2030

// H&M profits increase as the retailer bounces back from effects of Covid-19
// Gross profit grew 12.3% to £8.34bn in the full year

H&M has recorded a “strong recovery” as full-year profits increased in the year to November 30, 2021, a nearly a sevenfold increase on the previous year’s earnings of SEK 2 billion (£163.1 million).

The fashion retailer recorded a profit after financial items of SEK 14.3 billion (£1.14 billion) during the period while gross profit grew 12.3% to SEK 105 billion (£8.34 billion). Sales across the group rose 6% in constant currencies to SEK 198.97 billion (£15.8 billion).

H&M chief executive Helena Helmersson set out ambitious plans to double group sales by 2030 while halving its carbon emissions, when unveiling the profits rise.

It will open stores in six new markets in 2022 – Kosovo, North Macedonia, Ecuador, Costa Rica, Guatemala and Cambodia – and launch an online proposition in Belarus, Kazakhstan, Ukraine, Colombia and Peru.

Helmersson said the group “can fully focus on growth again” after the trading landscape returned to “a more normalised situation” following the Covid-19 crisis.

“By quickly taking decisive action we have succeeded in managing the negative effects of the pandemic,” she said.

“We ended the year strongly with sales back at the same level as before the pandemic and with profitability better than it has been for several years.

“We see significant opportunities to grow both sustainably and profitably. The goal for 2030 is to double sales while at the same time halving our carbon footprint.”

READ MORE: H&M launches its first ever virtual fashion collection

Sales across the group rose 6% in constant currencies to SEK 198.97 billion (£15.8 billion) during the financial year.

Gross margin climbed 2.8 percentage points to 52.8%, aided by growth in full-price sales and digital sales rose 24% year on year in constant currencies, accounting for 32% of total sales.

In its fourth quarter, H&M posted an 8% uplift in net sales to SEK 56.8 billion (£4.5 billion), as sales growth in its UK business outpaced its other major markets. UK revenues surged 36% in constant currencies to SEK 4.3 billion (£430.5 million) over the quarter.

Helmersson said: “While we respect the ongoing challenges brought by the pandemic, we have demonstrated our ability to quickly adapt and seize opportunities that arise.

“Customer focus, quick action and flexibility have been key in managing the pandemic and will be just as important going forward.

“Customers must always feel confident that with us they will be able to find the best combination of fashion, price, quality and sustainability.

“With continued satisfied customers and strong relations with all our partners, we are optimistic about the opportunities for long-term and sustainable growth for the H&M Group.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post H&M profits jump sevenfold as it aims to double sales by 2030 appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/3g3iz3E
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more