H & M Hennes & Mauritz AB Full-Year Report

  H & M Hennes & Mauritz AB Full-Year Report

Business Wire

STOCKHOLM -- January 30, 2013

Regulatory News:

1 December 2011 – 30 November 2012

FULL-YEAR

· The H&M Group’s (STO:HMB) sales including VAT increased in local currencies
by 11 percent during the financial year. Sales in comparable units increased
by 1 percent. Converted into SEK, sales excluding VAT amounted to SEK 120,799
m (109,999), an increase of 10 percent.

· Gross profit amounted to SEK 71,871 m (66,147), corresponding to a gross
margin of 59.5 percent (60.1).

· Profit after financial items amounted to SEK 22,285 m (20,942). The Group’s
profit after tax increased by 7 percent to SEK 16,867 m (15,821),
corresponding to SEK 10.19 (9.56) per share. Profit after tax increased by 1
billion SEK despite negative effects from the Group’s large long-term
investments and negative currency translation effects.

· Strong expansion during the year. The Group opened 304 (266) new stores net
compared to originally planned 275. China and the US were the largest
expansion markets.

THE FOURTH QUARTER

· The H&M Group’s sales including VAT increased by 9 percent in local
currencies in the fourth quarter. Sales in comparable units were unchanged.
Converted into SEK, sales excluding VAT amounted to SEK 32,502 m (30,952).

· Gross profit amounted to SEK 20,017 m (19,150), corresponding to a gross
margin of 61.6 percent (61.9).

· Profit after financial items amounted to SEK 6,636 m (6,802). Group profit
after tax amounted to SEK 5,287 m (5,357), corresponding to SEK 3.19 (3.24)
per share. Profits after tax were affected by large long-term investments as
well as negative currency translation effects of approximately SEK 240 m.

· The Board of Directors proposes a dividend of SEK 9.50 (9.50) per share for
the financial year 2011/2012.

· Sales in December 2012 increased by 8 percent in local currencies compared
to the corresponding month the previous year. Sales in comparable units
decreased by 2 percent. Sales in December were affected by a negative calendar
effect of approximately 3 percentage points.

· Sales in January 2013 are expected to increase by 5 percent in local
currencies compared to the same month last year. From mid-January onwards,
sales were negatively affected by very cold weather in many of H&M’s markets
in Europe.

· H&M plans a net addition of around 325 stores for the financial year
2012/2013. · Chile, Estonia, Lithuania, Serbia and, via franchise, Indonesia
will become new H&M markets in 2013.

· The new fashion brand & Other Stories will open its first stores during
spring 2013 in Spain, Germany, Denmark, UK, Italy, France and Sweden. & Other
Stories will also be available via online sales in these countries as well as
in Belgium, the Netherlands and Finland at stories.com.

· COS will expand to new countries in 2013 with stores in Oslo, Norway and in
Dubai, UAE.

· The completely mobile-adapted H&M shop online was launched in H&M’s eight
existing online markets in January 2013.

Comments by Karl-Johan Persson, CEO “H&M continues to stand strong in a
challenging clothing market which in many countries has been even more
challenging in 2012 compared to 2011. The fact that we increased sales by 11
percent in local currencies and 1 percent in comparable units whilst
continuing to gain market share proves once again that customers appreciate
our collections, which offer a wide range of inspiring fashion for everyone.

We increased our profits by 1 billion SEK – i.e. an increase of 7 percent
compared to the previous year – despite negative effects from large long-term
investments and currency translation effects. Our long-term investments relate
to a number of areas such as online shopping, IT, a completely new brand &
Other Stories and future broadening of the product range. These long-term
investments have created cost increases and to a great extent have not yet
generated any revenue. However, we consider these investments to be both
necessary and wise as they aim to secure future expansion and profits and
thereby further strengthen H&M’s position.

We continued our strong expansion and opened 304 new stores net during 2012.
Five new markets were added and we created around 10,000 new jobs. Today we
have a strong global presence with over 2,800 stores in 48 markets and more
than 104,000 employees.

Sustainability is becoming increasingly important and one element of our
strong offering is also that our increasingly aware customers see H&M as the
more sustainable option. Sustainability is therefore high on our agenda; it is
an integral part of our operations and has been so for some time.

The strong pace of expansion is continuing in 2013 with a planned 325 new
stores net. This means that we will effectively be opening a new store every
day. In 2013 the highest rate of expansion will again be in China and the US.
The new H&M countries in 2013 will be Chile, Estonia, Lithuania, Serbia and
Indonesia. We are very much looking forward to the spring when we will be able
to offer our customers a completely new fashion brand with the opening of the
first stores of & Other Stories.

We are looking forward to an exciting 2013 full of opportunities. We have the
greatest respect for the macro-economic climate and how it may affect the
consumption in many of our markets, but we have a strong belief in our
offering and are convinced that H&M will continue to maintain its strong
position.”

The information in this Full-year Report is that which H & M Hennes & Mauritz
AB (publ) is required to disclose under Sweden’s Securities Market Act. It
will be released for publication at 8.00 (CET) on 30 January 2013.

H & M Hennes & Mauritz AB (publ) SE-106 38 Stockholm Phone: +46-8-796 55 00,
Fax: +46-8-24 80 78, E-mail: info@hm.com Registered office: Stockholm, Reg.
No. 556042-7220

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted
on NASDAQ OMX Stockholm. The company’s business concept is to offer fashion
and quality at the best price. In addition to H&M, the group includes the
brands COS, Monki, Weekday and Cheap Monday, & Other Stories as well as H&M
Home. The H&M Group has more than 2,800 stores in 48 markets including
franchise markets. In 2012, sales including VAT were SEK 140,948 million and
the number of employees was more than 104,000. For further information, visit
www.hm.com.

This information was brought to you by Cision http://www.cisionwire.com

Contact:

Nils Vinge, IR
+46-8-796 52 50
or
Karl-Johan Persson, CEO
+46-8-796 55 00 (switchboard)
or
Jyrki Tervonen, CFO
+46-8-796 55 00 (switchboard)