H & M HENNES & MAURITZ AB FULL-YEAR REPORT
1 December 2009 – 30 November 2010
FULL-YEAR
- The H&M Group’s sales excluding VAT increased by 15 percent in local currencies.
Converted into SEK, the increase was 7 percent and sales amounted to SEK 108,483 m (101,393). - Strong sales increase of 5 percent in comparable units in local currencies.
- Gross profit amounted to SEK 68,269 m (62,474), corresponding to a gross margin of 62.9 percent (61.6).
- Profit after financial items amounted to SEK 25,008 m (22,103), an increase of 13 percent.
Group profit after tax was SEK 18,681 m (16,384), corresponding to SEK 11.29 (9.90) per share.
THE FOURTH QUARTER
- The H&M Group’s sales excluding VAT increased by 15 percent in local currencies.
Converted into SEK, the increase was 6 percent and sales amounted to SEK 29,711 m (28,011).
Sales in comparable units increased by 7 percent in local currencies. - Gross profit amounted to SEK 18,792 m (18,581), corresponding to a gross margin of 63.2 percent (66.3).
- Profit after financial items amounted to SEK 7,178 m (7,992), a decrease of 10 percent.
Adjusted for currency translation effects, profit after financial items would have been in line with the previous year. - Group profit after tax amounted to SEK 5,487 m (6,154), corresponding to SEK 3.32 (3.72) per share.
- Very good start for H&M in Turkey.
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- The Board of Directors proposes a dividend of SEK 9.50 (8.00) per share for the financial year 2009/2010.
- Sales in December 2010 increased by 8 percent in local currencies compared to the same month the previous year.
- Sales in the period 1 – 25 January 2011 increased by 9 percent in local currencies compared to the same period last year.
- H&M plans for a net addition of around 250 stores for the financial year 2010/2011.
- Continued investments in online and catalogue sales where H&M sees great potential for future growth;
– new H&M Shop Online will be launched in the beginning of 2011
– Online sales in USA planned to be launched at the turn of the year 2011/2012
Comments by Karl-Johan Persson, CEO
”2010 was a very good year for H&M with a sales increase of 15 percent. Profit after financial items increased to SEK 25 billion. During the year we improved our market position further with a strengthened customer offering by giving the customers even more fashion and quality at the best price. The economy improved from 2009 but in several countries the economic situation was still uncertain and difficult.
In the fourth quarter, sales increased by a satisfactory 15 percent. The operating margin, of approximately 24 percent, continued to be at a high level. Excluding currency translation effects, profit after financial items was in line with the previous year.
In 2011, we plan to open around 250 stores net in new and existing markets. We will open in five new markets. At the same time we are expanding our online and catalogue sales. At the start of 2011, we are launching the new H&M Shop Online in the markets where we offer online and catalogue sales already. Shopping experience and functionality have been improved. Around year-end we plan to start online sales in USA, the world’s largest online market.
External factors change in the markets of production. Raw material prices have increased; cotton prices for example almost doubled in 2010. Naturally, H&M has to adapt to changing conditions but always in a way that is in accordance with our business concept – to offer customers fashion and quality at the best price – and in that way increase the opportunities for us to continue to take market shares.
We are optimistic about the future and we plan to increase sales in comparable units in 2011.”
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 27 January 2011.
CONTACT PERSONS
Nils Vinge, IR +46-8-796 52 50
Jyrki Tervonen, CFO +46-8-796 52 77
Karl-Johan Persson, CEO +46-8-796 52 33
Switchboard +46-8-796 55 00