H&M Hennes & Mauritz AB three-month report

THE FIRST QUARTER

• The H&M Group’s sales excluding VAT amounted to SEK 24,846 m (23,299), an increase of 7 percent. In local currencies, the increase was 13 percent.

• Gross profit amounted to SEK 15,390 m (13,178), corresponding to a gross margin of
61.9 percent (56.6).

• Profit after financial items amounted to SEK 5,055 m (3,554), an increase of 42 percent. Group profit after tax was SEK 3,741 m (2,577), corresponding to SEK 4.52 (3.11)
per share.

• Sales in February increased by 10 percent in local currencies compared to the same month last year.

• Successful opening in Seoul, South Korea in February.

————————————————————-

• Successful franchise openings in Tel Aviv and Jerusalem, Israel in March.
• Sales in March increased by 21 percent in local currencies compared to the same month last year.

Q1 2010 Q1 2009
(SEK m)
Net sales 24,846 23,299
Gross profit 15,390 13,178
gross margin, % 61.9 56.6
Operating profit 4,978 3,364
operating margin, % 20.0 14.4
Financial items 77 190
Profit after financial items 5,055 3,554
Tax -1,314 -977
Profit for the period 3,741 2,577

Earnings per share, SEK 4.52 3.11