×
334
Fashion Jobs
DIAMOND RETAIL INDIA
Hiring For Sales Officer/Area Sales Manager (Jharkhand All District)
Permanent · Chatra
DIAMOND RETAIL INDIA
Hiring For Sales Officer/Area Sales Manager /Sales Manager (up)
Permanent · Mirzapur
FINO PAYMENTS BANK
Territory Sales Manager - Merchant & Distributor Onboarding - wb
Permanent · Cooch Behar
SUGUNA FOODS PRIVATE LIMITED
Area Sales Manager-Animal Health Products Sales (Bangalore)
Permanent · Bengaluru
MUTHOOT FINCORP LTD
Area Manager - Chennai
Permanent · Chennai
SUGUNA FOODS PRIVATE LIMITED
Area Sales Manager-Animal Health Products Sales (Bangalore)
Permanent · Bengaluru
DIAMOND RETAIL INDIA
Hiring For Sales Officer/Area Sales Manager/Sales Manager (Bihar)
Permanent · Katihar
VIJAY SYSTEMS ENGINEERS PVT LTD ( UMBERGOAN)
Production Manager
Permanent · Vapi
VIDVAS HR SOLUTIONS PRIVATE LIMITED
sr Manager - Production . Only Leather Bags Exp - Chennai
Permanent · Chennai
SHREE SADGURU MASALA & SPICES IND PVT LTD
Regional Sales Manager
Permanent · Navi Mumbai
MAGNATEK ENTERPRISES
Looking For Area Sales Manager
Permanent · Chennai
BANDHAN LIFE SCIENCE PRIVATE LIMITED
Area Sales Manager
Permanent · Kolkata
WINGS PHARMACEUTICALS
Area Sales Manager - Generic Division
Permanent · Ludhiana
FIRST SOLUTION
Agency Development Manager/Recruitment Development Manager(Insurance)
Permanent · Pune
NCL INDUSTRIES LIMITED (BISON PANEL)
Area Sales Manager - Hyderabad (Boards Division)
Permanent · Hyderabad
LN GLOBAL CAREER SERVICES LLP
Required Regional Sales Manager For Pharmaceutical Company
Permanent · Chennai
LN GLOBAL CAREER SERVICES LLP
Required Zonal Sales Manager For Pharmaceutical Company
Permanent · Chennai
LEVI'S
Group Product Manager
Permanent · Bengaluru
AVENUE SUPERMARTS LIMITED
Excellent Opportunity With Dmart _ Production Managers
Permanent · Chikmagalur
ENOAH I SOLUTION INDIA PRIVATE LIMITED
Area Sales Manager
Permanent · Bengaluru
KISHOR EXPORTS
Garment Technician
Permanent · Agra
CENTURY PLYBOARDS (I) LIMITED
Area Sales Manager - Delhi / Ghaziabad
Permanent · Ghaziabad
Published
Oct 3, 2019
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

H&M rides high as turnaround gathers pace, Q3 and September look good

Published
Oct 3, 2019

H&M released its nine-month and Q3 results on Thursday and the company seems to be back on a strong path after some tough times not many seasons ago, with the numbers beating analyst predictions.


& Other Stories



In the nine months to August 31, net sales rose 11% to SEK171 billion (€15.7bn/£14bn/$17.3bn), a rise of 6% currency-neutral. “The ongoing transformation work has contributed to continued positive sales development with more full-price sales, lower markdowns and increased market share,” it declared. Profit after financial items rose 6% to SEK11.988 billion.

Meanwhile, Q3 itself seemed even stronger with sales up 12% to SEK62.57 billion, or up 8% in local currencies. The company said the success came on the back of “well-received summer collections”. And online sales in the third quarter increased by as much as 30%, or 25% in local currencies.

The firm’s Q3 gross profit rose 13% to SEK31.8 billion and this corresponded to a gross margin of 50.8%, up from 50.3%. Profit after financial items increased by 25% to SEK 5 billion.

And the company has plenty to look forward to as well. The H&M brand was “successfully” launched on India's leading e-commerce platform Myntra in August, which puts it in front of a massive consumer group and the firm said the “reception has exceeded the company’s high expectations”.

Meanwhile, although sector peers have bemoaned the warm weather in many markets during September, H&M said its sales in local currencies last month increased by 8% year-on-year.

It added that the integration of its online and physical stores continues at full speed and it “continues to actively optimise the store portfolio through increased consolidation in established markets while continuing its expansion in growth markets.” That means the net addition of new stores for the year will be around 120, which is less than it had previously expected.

So what did CEO Karl-Johan Persson have to say? “Well-received summer collections and increased market share show that we are on the right track with our transformation work to meet customers’ ever-increasing expectations,” he explained. “The continued development of more full-price sales and reduced markdowns contributed to a 26% increase in operating profit in the third quarter, all while maintaining a high level of activity in our transformation work.”

And he added that growth was good in many markets, including the US where sales in local currencies rose 19%. In Poland they rose by 20%, Italy by 15%, Russia by 12% and India by 29%. Sales also developed well in South America, up as much as 32% in Chile alone.

But it wasn’t all good news and “things were a bit tougher in some of our franchise markets due to challenging macro factors,” the CEO said, but he gave no details.

Overall, the reception was positive to the figures and the firm’s shares rose as much as 7% in early trading.

Steve Miley, a senior market analyst at www.asktraders.com, said the numbers “provide optimism that the current transformation plan is reaping reward. These are exactly the figures that investors want to see. They provide solid evidence that H&M’s transformation is on track after experiencing years of falling profits. With changing consumer habits and tougher competition, it’s a challenging climate to be trading in. Yet H&M [is] showing all the right signs that [it’s] on the path to recovery.”

Copyright © 2021 FashionNetwork.com All rights reserved.