H&M reports 9% higher sales, earnings of 1.54 kronor per share

Wednesday, 06. April 2016 10:37

The sales of Hennes & Mauritz AB increased by 9% in local currencies in the first quarter, which translates to rise of 8% when converted to the Swedish krona: 50.62 billion kronor, compared to 46.79 billion kronor in the first quarter of 2015. Earnings per share were set at 1.54 kronor, versus 2.18 kronor in the comparable quarter a year ago.

Gross margin was at 52%, down from 55.2% in the previous quarter, on net profit of 2.54 billion kronor, which compares to 3.61 billion kronor in the previous first quarter.

"Profits in this year’s first quarter have been negatively affected by a continued very negative US-dollar effect which made our purchasing much more expensive, as well as by increased markdowns due to larger volumes of winter garments that remained as a result of the warm autumn," said Karl-Johan Persson, the chief executive officer of H&M.

When it comes to guidance for the second quarter, the H&M said March sales increased by 2%, and added that Easter holidays and warmer weather would shape the outcome for period ending in June.

The Stockholm, Sweden-based garment and consumer goods retailer runs almost 4 thousand stores worldwide, with 132 thousand employees, and is trying to expand its e-commerce segment to 34 markets by the end of the year.

Shares of H&M rose 4.22% to 276.40 kronor by 10:35 a.m. CET, giving the stock much needed boost, since it lost 8.47% of the value year-to-date.

Imag: Hennes & Mauritz AB

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Breaking the News / ZR