H & M Hennes & Mauritz AB Three-Month Report
STOCKHOLM -- March 21, 2013
H & M Hennes & Mauritz (STO:HMB):
1 December 2012 – 28 February 2013
*The H&M Group’s sales including VAT increased in local currencies by 6
percent during the first quarter. Sales in the quarter have been
negatively affected by calendar effects by slightly more than 2 percentage
points. Converted into SEK, sales excluding VAT amounted to SEK 28,392 m
(27,832), an increase of 2 percent. The difference in sales performance in
local currencies versus SEK is explained by substantial negative currency
translation effects as a result of the continued strengthening of the
Swedish krona against most sales countries’ currencies.
*Gross profit amounted to SEK 15,679 m (15,537), corresponding to a gross
margin of 55.2 percent (55.8). Increased markdowns have negatively
affected the gross margin by 0.5 percentage points in relation to sales
compared to the corresponding quarter last year.
*Profit after financial items amounted to SEK 3,234 m (3,701). The Group’s
profit after tax amounted to SEK 2,458 m (2,739), corresponding to SEK
1.49 (1.65) per share. Profits have been negatively affected by large
long-term investments but also by substantial negative currency
*Fantastic reception for the new fashion brand & Other Stories launched in
*H&M is ramping up the pace of expansion. The expansion plan for financial
year 2013 has been increased to around 350 new stores net from the 325
*Chile, Estonia, Lithuania, Serbia and, via franchise, Indonesia will
become new H&M markets in 2013.
*Australia will become a new market for H&M in 2014.
*An extended sports concept will be launched at the beginning of 2014.
Comments by CEO Karl-Johan Persson
“The first quarter has been characterised by the continued challenging
situation for the fashion retail industry in many of our markets mainly due to
a continued tough macro-economic climate, but also due to unfavourable weather
during parts of the quarter. This meant that sales in the first quarter did
not reach our expectations. The reported sales increase in SEK has been
affected by substantial negative currency translation and calendar effects of
almost SEK 2 billion – adjusted for these negative effects the sales increase
was 8 percent.
Our new fashion brand & Other Stories has been tremendously well received at
its launch this March. Sales, both in stores and online, have far exceeded our
high expectations. This clearly shows that the long-term work behind the
development of & Other Stories has been completely right. This opens the
possibility that & Other Stories can expand more widely and faster than we
originally planned. We see great potential for & Other Stories in both the
short and the long term, and are convinced that our new brand will become an
important part of the H&M Group.
2013 will be a challenging and exciting year with continued strong expansion.
We are ramping up the rate of expansion to approximately 350 new stores net
compared to the originally planned 325. We will open in five new countries in
2013 and are also preparing to open in other countries in 2014, such as in
Australia. We are also continuing to work on our long-term investments in IT,
online, & Other Stories and the broadening of our range. An example of this
will be the launch of H&M’s updated and extended sports concept for women, men
and children at the beginning of 2014. The range will be significantly broader
than today and will consist of sportswear and accessories in specially
developed functional materials suited to various kinds of sporting
The information in this Interim 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 21 March 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: email@example.com
Registered office: Stockholm, Reg. No. 556042-722
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
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H & M Hennes & Mauritz AB
Nils Vinge, IR
+46-8-796 52 50
Karl-Johan Persson, CEO
+46-8-796 55 00 (switchboard)
Jyrki Tervonen, CFO
+46-8-796 55 00 (switchboard)
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