The H&M Group’s (OMX: HM B) fourth quarter report for 2010/2011 did not contain any major surprises but was perhaps somewhat more downbeat than expected. Sales including Value Added Tax increased by 6 percent in local currencies and declined by 3 percent in comparable units. In Swedish Kronor the sales excluding VAT were a hair under 31 billion with gross profit at 19.15 billion. December sales were up against 2010 numbers. Profit after taxes stood at 5.357 billion aka. 3.24 per share.
The company is planning to add around 275 stores in 2012 with Bulgaria, Latvia, Malaysia and Thailand introduced as completely new markets in early 2012. The company is also planning to open up its first shop in Mexico somewhere in the autumn. Most new stores will be in China, U.S., UK and Germany. H&M’s new Collection of Style (COS) concept, which sells minimalized design of the highest function and quality at prices somewhat above those of H&M stores will expand to Hong Kong, Italy, Finland and Kuwait
CEO Karl-Johan Persson is satisfied with H&M’s strong standing in a challenging market. Cost inflation has remained high. HM’s board is proposing a dividend of 9.5 SEK a share. The share is trading relatively flat at around 220 SEK in an upward trending market.
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