• 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
Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Palestinians in Gaza last month. Photo: Adel Hana

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

Interview
Stockholm's shocking take on Halloween
For ten days, Globen is transformed into a giant pumpkin. Photo: Shockholm

Stockholm's shocking take on Halloween

American Bill Schacht missed the spooky outfits, family feasts and charity events he associated with Halloween when he moved to Sweden. So he did something about it. The Local meets the founder of the capital's annual Shockholm parade. READ  

Business & Money
Huge losses for energy giant Vattenfall
A Vattenfall plant in Germany. Photo: TT

Huge losses for energy giant Vattenfall

Swedish energy company Vattenfall has reported losses for the third quarter in a row. READ  

International
Malala donates prize winnings to Gaza
Malala receives the Children's Prize from Queen Silvia. Photo: TT

Malala donates prize winnings to Gaza

UPDATED: Girls' rights champion Malala Yousafzai, who was in Sweden to accept the World's Children's Prize on Wednesday, said she would use all her winnings to help rebuild schools in war-ravaged Gaza. READ  

Swedish Honeymoon Killing
Cape Town 'fixer' phoned Dewani before killing
Dewani in a Cape Town court. Photo: TT

Cape Town 'fixer' phoned Dewani before killing

A man jailed for killing British businessman Shrien Dewani's wife during their Cape Town honeymoon said on Wednesday they spoke shortly before the murder to discuss payment. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
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

994
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