Sweden-based fashion retailer H&M has reported sales excluding VAT were up 7% in the fiscal year ended 30 November, up to SEK108,483 million (USD15.04 billion). Profit after financial items was up 13% to SEK25,008 million (USD3.47 billion).
For the fourth quarter, sales excluding VAT were up 6% to SEK29,711 million (USD4.12 billion), while profit after financial items was down 10% to SEK7,178 million (USD996 million). Explaining the profit fall in Q4, H&M CEO Karl-Johan Persson said: "Raw material prices have increased; cotton prices for example almost doubled in 2010. Naturally, H&M has to adapt to changing conditions but always in a way that is in accordance with our business concept to offer customers fashion and quality at the best price.”
For 2011, H&M plans for a net addition of around 250 stores, including some in five new markets. The retailer will continue investment in online and catalogue sales where it sees great potential for future growth. The new H&M online shop will be launched in the beginning of 2011 with online sales in the US planned to be launched at the end of year.
