Better than expected for H & M as Asian Expansion the next big thingThursday, 29 September 2011
Clothing giant Hennes & Mauritz (H & M) reports a profit before tax of Skr4.85 million for the period June-August, the third quarter in the company's broken business year.
Corresponding period of 2010 the company made a profit before tax of Skr5.735 million.
Analysts had on average expected a profit of Skr466million according to Reuters compilation of forecasts.
Sales in the third quarter rose 5 percent, measured in local currencies and compared to the same month last year. Same store sales declined by 3 percent.
Gross margin in the third quarter to 58.6 percent, compared with 60.5 percent for the same periods of 2010.
AdvertisementKarl-Johan Persson, CEO said: “H&M continues to gain market share in a challenging environment for the fashion retail industry. This shows H&M’s strong market position and we see it as a proof that customers appreciate our work on the customer offering.
We have great respect for the current economic climate. In this situation, it is extra important to have a long-term perspective and to always make sure that we give customers the best combination of fashion and quality for their money in every market.
We have a strong business concept, a strong financial position and we are continuing to grow with high profitability. We are increasing our expansion for full-year 2011 to approximately 265 new stores net, from the originally planned 250.”
The company also announced in the report that its first store in Singapore opened in September and was very well received, adding that Indonesia and Thailand are scheduled to become new franchise markets for H&M during 2012.
This will make increased expansion for the financial year 2011 from 250 to approximately 265 new stores net is a realism.
The autumn collections have been well received even though the start of the season has been negatively affected by unseasonably warm weather in large parts of Europe. Sales in the period 1 – 27 September 2011 increased by 3 percent in local currencies compared to the same period last year.
By Scancomark.se Team
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