H&M raises its profit for the first time in four years and sees a 6% increase in 2019
The Swedish retail giant ended the last fiscal year (concluded on November 30) with a profit of 13.4 billion Swedish kronor (1.4 billion dollars).
H&M reverts to profitability. After three years of profit reduction, the Swedish fashion distribution giant has ended the fiscal year of 2019 with a profit of 13.4 billion crowns (1.4 billion dollars), 6.3% more than the previous year.
The company explains that the benefit has been positively affected by a “one-off tax income of SEK 425 m (44 million dollars) as a result of the US taxes reform.”
The group’s gross profit stood at 122 billion crowns (12.7 million dollars), up 10.4%, which represents a gross margin of 52.6%, in line with 52.7% of the previous year.
H&M has maintained a growing trend at the start of 2020, with a 5% increase in sales
Sales, which had already been advanced at the end of last year, increased by 11%, the biggest increase since 2015, to 232,755 million crowns (12,7 billion dollars). H&M attributes this rise to the transformation process that the company is immersed in, and which has also allowed it to increase sales at full price, reduce discounts and increase its market share.
The trend is replicated in the fourth quarter. Between September 1 and November 30, H&M increased its sales by 9%, to 61,694 million crowns (12,7 billion dollars) and increased its profit by 18.9%, to 4,212 million crowns (12,7 million dollars).
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