H&M earns 10% less in first semester in a complete turn into digitalization
The turnover of the group, for its part, rose by 10.4%, up to 108,489 million Swedish crowns (10,290 million euros) in the first six months of the year.
H&M closes the first semester at double speed. The Swedish fashion distribution giant, number two in the world by volume of business, has closed the first six months of the year with a net profit of 5,372 million Swedish crowns (509.5 million euros), 10.4% less than the same period of the previous year.
The company has explained in a statement that the fall in profits is due to the restructuring costs in which the company is immersed. “Our transformation work in response to the rapid shift in fashion retail is continuing at full speed”, has explained the group.
“While the costs of this have held back profitability in the short term, we remain convinced that our focus on meeting customers’ increased expectations will contribute to a gradual increase in profitability and to long-term positive development”, adds the company.
H & M has completed the period with 4,979 establishments of its own
The turnover of the group, however, has risen 10.6% in the period, to 108,498 million Swedish crowns (10,290 million euros). By regions, the group's sales in America were the ones better improving within the period, with a growth of 23.7%, to 19,753 million Swedish crowns (1,873.6 million euros).
In Europe and Africa, the group increased its turnover by 6.1% to 71,305 million Swedish crowns (6,763.7 million euros), while turnover in Asia and Oceania rose by 15.8% , up to 17,431 million Swedish crowns (1,653.4 million euros).
In the first six months of the year the distribution giant has opened 83 new establishments of all its brands, while it has closed another 74. In total, H&M has ended the period with 4,979 stores.
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