In the nine months to August 31, 2014 sales including VAT in local currencies at Swedish apparel retailer H&M surged 15 percent, year-on-year.
Converted into SEK, sales excluding VAT amounted to SEK 108,775 million, up 18 percent from SEK 92,067 million in the nine months to August 31, 2103.
Profit after financial items also leapt 19 percent to SEK 18,096 million in first nine months of 2014 from SEK 15,189 million.
The Group’s profit after tax in the period under review rose to SEK 13,754 million corresponding to earnings of SEK 8.31 per share against SEK 11,544 million and earnings of SEK 6.97 per share.
In the third quarter ending to August 31, 2014, H&M said well received collections resulted in strong sales and increased market share.
During the third quarter of 2014, sales including VAT increased in local currencies by 16 percent from a year earlier quarter.
Converted into SEK, sales excluding VAT mounted to SEK 38,805 million, up 21 percent from SEK 32,040 million in the prior year quarter.
Gross profit rose 20 percent to SEK 22,627 million in the third quarter of 2014 from SEK 18,828 million in corresponding quarter of 2013.
H&M said this corresponds to a gross margin of 58.3 percent against 58.8 percent.
Profit after financial items ascended to SEK 6,967 million from SEK 5,830 million, an increase of 20 percent.
The Group’s profit after tax also rose 20 percent SEK 5,296 million corresponding to earnings of SEK 3.20 per share from SEK 4,431 million and earnings of SEK 2.68 per share in third quarter of 2013.
H&M said its online sales in Italy and Spain, which were launched in August, have got off to a very good start.
It also reported a continued strong sales development in other brands in the H&M Group like COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home.
H&M’s online store in China, which was launched already in September, has got off to a very good start, the apparel marketer informed.
H&M undertook major expansion in 2014, and add 375 new stores in the year and plans to open 8–10 new online markets in 2015.
H&M’s opening in India, planned for autumn 2014, has been postponed until 2015. The retailer will also open stores in South Africa, Peru, Taiwan and Macau in 2015. (AR)
