H&M soars in first quarter
H&M says global sales in its first quarter – to February 28 – soared 15 per cent year-on-year on a local currency basis.
CEO Karl-Johan Persson says the increase reflected well-received collections for all brands in the group, which boosted market share.
Sales excluding VAT totalled US$4.73 billion.
Gross profit increased by 26 per cent to $2.6 billion, which corresponds to a gross margin of 55.2 per cent, compared with 54.9 per cent the previous year.
In the first quarter, H&M opened its first store in Taipei, Taiwan, and in the next three months will make its debut in Macau where it has two stores planned, along with entering Peru for the first time. In the second half of the year it will add Africa and India to its global footprint.
The company said in a statement that sales in the first three weeks of the second quarter rose nine per cent in local currencies.
“The year has got off to a very good start and we have great faith in our offering. Although the strong US dollar will affect our sourcing costs going forward, we will make sure that we always have the best customer offering in each individual market,” said Persson.