H & M Hennes & Mauritz AB (publ) announced group earnings results for the fourth quarter and year ended November 30, 2017. The H&M group's sales including VAT amounted to SEK 58,481 million, a decrease of 4% from SEK 61,098 million last year. In local currencies, the decrease was 2%. Sales excluding VAT amounted to SEK 50,407 million from SEK 52,720 million. Profit after financial items amounted to SEK 4,873 million against SEK 7,409 million a year ago. The group's profit after tax amounted to SEK 3,993 million against SEK 5,914 million, corresponding to SEK 2.41 against SEK 3.57 per share a year ago. The weak sales development within the H&M brand's physical stores lead to increased markdowns and handling costs which had a negative impact on the result in the quarter.

Sales including VAT increased by 4% to SEK 231,771 million in the financial year against SEK 222,865 million last year. Sales increased by 3% in local currencies. Sales excluding VAT amounted to SEK 200,004 million against SEK 192,267 million a year ago. Profit after financial items amounted to SEK 20,809 million against SEK 24,039 million a year ago. The group's profit after tax amounted to SEK 16,184 million against SEK 18,636 million, corresponding to SEK 9.78 against SEK 11.26 per share a year ago.

Sales including VAT in the period 1 December 2017 to 31 January 2018 are expected to increase by 1% in local currencies compared to the corresponding period the previous year.