We inform you that on this website we use our own and third-party cookies to collect information about its use, improve our services and, where appropriate, display advertising by analyzing your browsing habits. You can expressly accept its use by pressing the "ACCEPT" button or configure and select the cookies you want to accept or reject in the settings. You can also get more information about our cookie policy here.

The global fashion business journal

Jun 13, 20244:43pm

H&M sales up 5.2% but profit shrinks for the third year in a row

The net profit of the group stood at 12.65 billion Swedish krona (1.21 billion euros), 21.8% less than in the previous fiscal year.

Jan 31, 2019 — 9:00am
Related topics

H&M grows by 5.2% but becomes less profitable for the third consecutive year




H&M continues growing but, at the same time, reduces its profitability for the fourth year in a row. The Swedish fashion retail giant closed the last fiscal year (on November 30), with a revenue of 210.4 billion Swedish kroner (20.27 billion euros), 5.2% more than last year. However, the margin, the gross and net profit continue to shrink.


The fiscal year 2018 is the fourth year in a row in which H&M has been losing profitability despite continuing to increase its sales. Specifically, the company reduced its profit after taxes by 21.8%, to 12.65 billion Swedish krona (1.21 billion euros), while the operating profit stood at 15.49 billion crowns (1.49 billion euros), 24.7% less.


It is the third year a row in which, although sales have increased, earnings of H&M went down. The company’s gross margin also fell, from 54% in 2017 to 52.7% in 2018.

The Swedish company, which closed the year with a network of 4,968 points of sale and 123,283 workers around the world, had a liability of 32.23 billion SEK (3.10 billion euros) on November 30, compared to 21.43 billion SEK from the same period in the previous year.


Sales from the online channel boosted H&M’s growth in 2018, which reached 30 billion Swedish krona, 22% more. Online sales already represent 14.5% of H&Ms revenue, compared to 12.5% in 2017.


The H&M group, who also owns Cos, Weekday,  Monky, &Other Stories, Arket and Afound, said that “it has been a challenging year for the H&M group and for the sector, but after that difficult first half, there are signs that the efforts for the transformation of the company are beginning to take effect,” said Karl-Johan Persson, CEO of the group.


Participation rules



Validation policy for comments: 

MDS does not perform prior verification for the publication of comments. However, to prevent anonymous comments from affecting the rights of third parties without the ability to reply, all comments require a valid email address, which won’t be visible or shared.
Enter your name and email address to be able to comment on this news: once you click on the link you will find within your verification email, your comment will be published.

0 comments — Be the first to comment