H&M has posted a surge in full-year profits as it hailed a “strong recovery” from the peak of the coronavirus pandemic.
The Swedish fashion giant recorded a profit after financial items of SEK14.3bn (£1.14bn) in the year to November 30, 2021 – a nearly sevenfold increase on the previous year’s earnings of SEK2bn (£163.1m).
Gross profit grew 12.3% to SEK105bn (£8.34bn) during the 12-month period, as gross margin climbed 2.8 percentage points to 52.8%, aided by growth in full-price sales.
H&M said sales across the group rose 6% in constant currencies to SEK198.97bn (£15.8bn) during the financial year.
Online sales jumped 24% year on year in constant currencies to account for 32% of the retailer’s total sales.
In its fourth quarter, H&M posted an 8% uplift in net sales to SEK56.8bn (£4.5bn), as sales growth in its UK business outpaced its other major markets.
UK revenues surged 36% in constant currencies to SEK4.3bn (£430.5m) in the three months to November 30, 2021. The next fastest-growing market in H&M’s top 10 territories was the USA, which racked up a 28% spike in sales.
H&M has set out ambitious plans to double group sales by 2030 while halving its carbon emissions.
It will open stores in six new markets in 2022 – Kosovo, North Macedonia, Ecuador, Costa Rica, Guatemala and Cambodia – and launch an online proposition in Belarus, Kazakhstan, Ukraine, Colombia and Peru, as it presses ahead with its global expansion drive.
H&M chief executive Helena Helmersson said the group “can fully focus on growth again” after the trading landscape returned to “a more normalised situation” following the Covid-19 crisis.
Helmersson said: “By quickly taking decisive action we have succeeded in managing the negative effects of the pandemic. We ended the year strongly with sales back at the same level as before the pandemic and with profitability better than it has been for several years.
“We see significant opportunities to grow both sustainably and profitably. The goal for 2030 is to double sales while at the same time halving our carbon footprint.”
She added: “While we respect the ongoing challenges brought by the pandemic, we have demonstrated our ability to quickly adapt and seize opportunities that arise. Customer focus, quick action and flexibility have been key in managing the pandemic and will be just as important going forward.
“Customers must always feel confident that with us they will be able to find the best combination of fashion, price, quality and sustainability. With continued satisfied customers and strong relations with all our partners, we are optimistic about the opportunities for long-term and sustainable growth for the H&M Group.”
- Get the latest fashion retail news and analysis straight to your inbox – sign up for our weekly newsletter
No comments yet