Hennes & Mauritz (H&M) has reported a 43% jump in sales touching nearly Rs 1,500 crore. H&M Group follows a December to November financial year. It runs other brands like COS, Monki, H&M Home, among others.
The global brand launched 8 stores in India in 2019, lower than what it added in 2018 when it opened 12 new stores here. Globally, H&M competes with Inditex-owned Zara, which now has 47 stores in India.
H&M’s sales grew 29% in 2018, touching touch Rs 1,108.2 crore in the year ended 30 November 2018.
The retailer has been unveiling more low priced products and reducing its extended sales period in India.
Janne Einola, Country Manager, H&M India, said, “We are delighted with the India results, within 5 years in the country and at almost 1500cr sales shows that the customers are very happy with H&M's business idea. Our stores continue to do strong sales, Online with hm and myntra has also shown good growth. We look forward to the Indian design collaboration with Sabyasachi launching soon and becoming increasingly relevant to the Indian audience.”
Karl-Johan Persson, CEO, Hennes & Mauritz AB, stated, “In all, the group’s net sales increased by 11% in the 2019 financial year. In local currencies, net sales increased by 6%. Sales growth was good in many markets in the fourth quarter. In India, sales increased by 33% in local currency.”
“Increased full-price sales and decreased markdowns contributed to an improvement in profit for the full year and in the fourth quarter, when we achieved a 25 percent increase in operating profit while maintaining a high level of activity in our transformation work. The composition and level of the stock-in-trade continue to improve, and we expect a decrease in markdowns again in the first quarter, for the sixth successive quarter,” Persson added.
The brand is looking at launching 200 new stores in 2020, mainly in growth markets, while at the same time consolidation will continue with around 175 planned store closures, mainly in established markets.
H&M said, “Most of the store openings will be in South America, Russia, Eastern Europe and Asia (excluding China), while the closures will take place mainly in Europe, the US and China.”