H&M Christmas sales see Q1 turnover rise

The Swedish fashion retailer Hennes & Mauritz (H&M) said a nine per cent increase in sales resulted in first quarter profit of SEK1.78bn (€191.9m), slightly ahead of forecasts and up from the SEK1.68bn (€181.1m) figure in the same period last year.

However, gross margins fell to 53.7% from 54.4% in the three months ending February 28, and H&M said results were also hit by currency translation to the tune of SEK36m (€3.8m).

The retailing giant said prices on new items to customers fell by around 5%, due to the weakening of the US dollar, while in unit terms, the number of items sold rose by around 20% with the increase in seasonal sales activity.

H&M opened seven stores during the first quarter, of which three were in Germany, one each in the UK, Belgium, France and the USA. Four stores were closed, bringing the total number of stores to 948.

The company said it plans to open 51 shops during the second quarter. The biggest part of the expansion will take place in Germany with eight openings, while the UK and Poland will get six each, Spain gets five openings and Norway will see four.

Three shops are set to close during in the next quarter.

H&M has also set its sights on Ireland and has indicated that it would like to open four outlets in Dublin, in the next few years.

As well as a major outlet planned for the Dundrum shopping centre, it wants a further suburban location and two city centre outlets. Newspaper reports said recently that the chain has already enlisted Hamilton Osborne King to scout suitable properties for it.

Founded in 1947 in Sweden by Erling Perrson, H&M operates in 18 countries and has more than 40,000 employees.