Tuesday, February 27

H&M increases sales by 12% in 2021 despite store closures

group net sales H&M they increased 12% in financial year 2021 in local currency and 6% in Swedish krona to around €18,972 million. Gross profit increased to 8,920 million euros, with a gross margin of 52.8%. Net profit reached 1,049 million euros. H&M group net sales in local currency increased by 11% in the fourth quarter.

One of the elements that attract the attention of the H&M beads by markets is the balance of stores, in which new openings is much lower than closed stores. In the case of Spain, one was opened and nine were closed, with a balance of 146 establishments. On a global level, H&M managed a total of 4,801 stores as of November 31, with an annual balance of 36 new stores and the closure of 91. The online sales of the H&M group continue to develop. In the fourth quarter, online sales increased 10% in local currencies and 6% in Swedish krona. During the year, online sales increased by 30% in local currency and 24% in Swedish crowns and have already reached 32% of the group’s total sales.

Related news

The company, within the framework of a process of adjusting its points of sale as a result of the pandemic, has proposed to double sales in 2030 by halving its carbon footprint, with a profitability of around 10%. The investments planned for this year amount to around 10,000 million euros. In 2022 H&M will launch in six new markets: the first stores will open in Ecuador, Kosovo and North Macedonia, and via franchise in Costa Rica, Guatemala and Cambodia. H&M online launch continues in 2022 with Belarus; Colombia, Kazakhstan, Peru and Ukraine. This expansion of commercial coverage is essential for growth.

For the period between December 1, 2021 and January 31, 2022, local currency sales are expected to increase 20% compared to the same period last year. “We finished the year strong, with sales at the same level as before the pandemic and profitability better than it has been for several years. Now that we are back to a more normal life situation with a solid financial position and good profitability, we can fully focus on growth again,” explained Helena Helmersson, Group CEO.