H&M sales increases 4% in 2017
The H&M group’s sales including VAT increased by 4 per cent to SEK 231,744 million (222,865) in the financial year 2017 that ended November 30. Sales excluding VAT amounted to SEK 199,987 million (192,267). In local currencies, sales went up 3 per cent. The group continued to grow during the year, however, sales development in Q4 was low below expectations.
In the fourth quarter of 2017, sales including VAT amounted to SEK 58,454 million (61,098). Sales excluding VAT amounted to SEK 50,390 million (52,720), a decrease of 4 per cent compared to the corresponding quarter last year. In local currencies, sales decreased by 2 per cent.
“The H&M brand’s online sales and sales of the group’s other brands continued to develop well. Meanwhile, the fourth quarter was weak for the H&M brand’s physical stores, which were negatively affected by a continued challenging market situation with reduced footfall to stores due to the ongoing shift in the industry. In addition, there have been imbalances in parts of the H&M brand’s assortment composition. In order to correct this, a number of actions have been taken. Moreover, the management team of the H&M brand has recently been strengthened,” Karl-Johan Persson, CEO, said.
“In order to respond even quicker to customers’ fast-changing behaviour the company’s ongoing transformation journey is being accelerated. Among other things, this includes continued integration of the physical and digital stores, and intensifying the optimisation of the H&M brand’s store portfolio – leading to more store closures and fewer openings,” concluded Persson. (RR)
Fibre2Fashion News Desk – India