• Sweden edition
 
H&M sees profits boom on strong spring sales

H&M sees profits boom on strong spring sales

Published: 20 Jun 2012 10:32 GMT+02:00
Updated: 20 Jun 2012 10:32 GMT+02:00

For the March-May quarter, H&M posted a net profit of 5.22 billion kronor ($746 million), well above the expectations of analysts polled by the Dow Jones Newswires, who had anticipated a net profit of 4.84 billion kronor for the quarter.

Following the news, the company saw its share price leap 2.5 percent in early morning trading on a Stockholm stock exchange up 0.2 percent.

H&M also saw a its sales, excluding VAT, jump 15 percent in the second quarter, to 31.66 billion kronor from 27.63 billion during the same period a year earlier, the company said in its earnings report.

"The spring collections have been well received by our customers as shown by our increased market share in a fashion retail market that continues to be challenging," company chief executive Karl-Johan Persson said in the statement.

The company, which in recent quarters had posted disappointing results due to high purchasing costs, said Wednesday that "overall, the effects of the earlier significantly negative external factors, such as the cotton price, were more or less neutralized."

H&M, which had seen its gross margin shrink in the first quarter, posted a stable margin in the second quarter of 61.7 percent, which was good news, analysts said.

"They give a positive surprise on the gross margin. All in all, these are pretty good figures," Sydbank analyst Nicolaj Jeppesen told Dow Jones Newswires.

H&M said it was continuing to expand rapidly, with plans to open 275 new stores during the full year 2012, including in five new markets: Bulgaria, Mexico, Latvia, Malaysia and Thailand.

The company counted 2,575 stores worldwide at the end of May, and said "China, the US and the UK are expected to be the largest expansion markets for H&M in 2012."

"There are also still great opportunities for expansion in markets such as Germany, France and Italy," it added.

The Swedish retailer said it also planned to launch online sales in the United States -- "the world's largest online market" -- later this year.

One of H&M's main competitors, Spanish Zara, has also said it will launch online sales in the United States in the second half of the year.

H&M meanwhile said its other brands, COS, Monki, Weekday and Cheap Monday, as well as its H&M Home furniture and interior store, were also continuing to expand, and confirmed that it would open a brand new chain next year under the name & Other Stories.

AFP/The Local

Follow The Local on Twitter

Your comments about this article

11:48 June 20, 2012 by Rebel
Fantastic! I am sure all the factory workers here in Sweden that produce goods for the company will be really happy.
Today's headlines
National
Swedish airfares to get cheaper in 2015

Swedish airfares to get cheaper in 2015

Sweden is set to buck the European trend of rising air prices with fares expected to drop next year according to a new report. READ  

National
Swede's homemade submarine nets fortune
Eric Westerberg's homemade submarine Isabelle. Photo: PS.nu

Swede's homemade submarine nets fortune

A Swedish submarine enthusiast who spent over 3,500 hours making his own vessel has sold his prized possession for 705,000 kronor ($98,500) in an online auction. READ  

National
Cops reported for making 'Roma' comment

Cops reported for making 'Roma' comment

Police in northern Sweden have been reported to the Equality Ombudsman for describing a wanted suspect as having a "Roma appearance." READ  

Donald Duck and Zlatan get Swedish votes
A political career for Zlatan? Some fans seem to want to see that. Photo: Peter Dejong/TT

Donald Duck and Zlatan get Swedish votes

The Bilderberg Group, the Satanic Initiative and Adolf Hitler all received votes in Sweden’s general election, according to a list released by the country’s electoral authority. READ  

Sport
Stockholm fails bid to host Euro 2020 games
The Swedish team in action. Photo: TT

Stockholm fails bid to host Euro 2020 games

Sweden's capital has missed out on a chance to host any Euro 2020 games, with Copenhagen the only Scandinavian city among the thirteen winning locations. READ  

Vicar: God rejects fans of women priests
Antje Jackelén, Archbishop of Uppsala, is the first woman to head the Swedish church. Photo: Stig-Åke Jönsson/TT

Vicar: God rejects fans of women priests

A Swedish priest has been fired after telling his congregation that people who support female priests would be rejected by God - despite the fact that his own church is led by a woman. READ  

Analysis
Women set to dominate top post-election jobs
Margot Wallström (right) could become Stefan Löfven's new Minister of Foreign Affairs. Photo: TT

Women set to dominate top post-election jobs

Sweden could soon get a female Foreign Minister, Fredrik Reinfeldt's ousted Moderate Party is preparing for its first woman leader and the grandmother of actor Hugh Grant's son is being tipped as Parliament's next Speaker. READ  

National
Sweden protests over Russian plane incursions
A Gripen plane was scrambled to see off the Russian planes. Photo: Johan Nilsson/TT

Sweden protests over Russian plane incursions

UPDATED: Sweden has summoned the Russian Ambassador for a dressing down after two Russian planes violated Swedish airspace last week. READ  

Elections 2014
'Good prospects' for Alliance co-operation

'Good prospects' for Alliance co-operation

UPDATED: Social Democrat leader Stefan Löfven says he is positive that his party can co-operate with the former governing Alliance on some issues. READ  

Lifestyle
Introducing...Astrid Lindgren
Pippi Longstocking comes to live at the Astrid Lindgren theme park. Photo: TT

Introducing...Astrid Lindgren

The creator of Pippi Longstocking, Astrid Lindgren, is the most translated author from Sweden, and has filled children's imaginations since the 1940s. The Local finds out why her work has become a timeless classic. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
The 'black gold' of Sweden's west coast.
National
West Sweden prepares for the 2014 lobster premiere
Society
What's on in Sweden
Politics
How Sweden Democrats went mainstream
Politics
Scandinavia and Scotland: closer links?
Gallery
Property of the week - Eskilstuna
Blog updates

20 September

How a Frog Can Save the Environment (Stockholm in my American Heart) »

"What we do we imagine when we think of children enjoying nature? Perhaps it’s fishing, marveling at lightning bugs on a muggy July day or blowing on the wispy petals of a dandelion to make a special wish. But perhaps most iconic of the playful innocence in childhood is hopping after and trying to catch..." READ »

 

19 September

Editor’s blog (The Local Sweden) »

"Happy Friday readers! It sure has been a exciting week in Sweden, where we’re set to get a new Prime Minister after Fredrik Reinfeldt stepped down following Sunday’s elections. The Local blogged live from the key political gatherings across Stockholm. Why not re-visit the action by taking a look at our photos, tweets, videos and analysis? Since the..." READ »

 
 
 
Sponsored Article
How to start a business in Stockholm
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Politics
Green Party wants 'better world' for kids
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

869
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN