H & M Hennes & Mauritz AB Announces Group Earnings Results for the Fourth Quarter and Year Ended November 30, 2017; Provides Sale Guidance for the Period 1 December 2017 to 31 January 2018
January 31, 2018 at 08:45 am
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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.
Hennes & Mauritz AB (H&M) specializes in designing and distributing clothes, accessories and cosmetics for men, women and children. The products are sold primarily under the H&M, H&M Home, COS, Monki, Weekday, Afound, & Other Stories and ARKET brands. Products are manufactured by subcontractors.
At the end of November 2023, products are marketed through a network of 4,369 points of sale (of which 282 franchises) located mainly in Sweden (91), the United States (508), Germany (420), the United Kingdom (238), France (197), Italy (160) and the Netherlands (107).
Net sales are distributed geographically as follows: Germany (14.9%), the United States (14%), the United Kingdom (7.4%), France (4.8%), Sweden (3.7%), Italy (3.2%), the Netherlands (3.1%), Poland (3.1%), Switzerland (2.9%), Canada (2.9%) and other (40%).
H & M Hennes & Mauritz AB Announces Group Earnings Results for the Fourth Quarter and Year Ended November 30, 2017; Provides Sale Guidance for the Period 1 December 2017 to 31 January 2018