Swedish fashion company H&M has managed a record profit over the past fiscal year, remarkably in the year where almost every other fashion retailer struggled because of a warm winter.
High purchase costs
H&M’s fiscal year ran until the 1st of December and resulted in a 210 billion krona turnover (€22.6 billion) for the fast fashion retailer. Compared to the year before, this is a sizeable increase as turnover only reached 177 billion krona (€19.1 billion) that year.
The excellent turnover growth came on the back of more than 400 new stores and the expansion of its online activities. The retailer now has more than 3,900 stores in 61 countries and its goal is to increase that number by 10 to 15% every year.
Its higher turnover also resulted in a higher net profit, namely up to 20.9 billion krona (€2.2 billion) from 19.9 billion krona (€2.1 billion) the year before. The strong dollar and higher purchase costs did however dampen the company’s profit.
