H&M to open 400 new stores this year
Sweden-based fashion retailer H&M plans to open 400 new stores in 2015 after posting a stronger-than-expected net profit of $752.1 million for the fourth quarter. It will launch a new store concept, H&M Beauty, in 900 stores as well as online this year.
H&M’s profit for the three months to November 30 was up 12% from $666.4 million during the same period in 2013. Revenue rose 11% in local currencies to $5.02 billion. However, H&M’s gross margin in the fourth quarter fell to 60.4% from 60.8% the previous year. The final quarter results helped the retailer post a full-year net profit of $2.41 billion for 2014 – up 17% on the previous year.
H&M said it opened a net addition of 379 new stores in 2014, compared to 356 in 2013, creating 16,000 new jobs in the process. The brand intends to continue the trend this year by opening around 400 new stores, with some of those shops planned for new markets including Taiwan, Peru, Macau, South Africa and India.
“Last year proved to be very good for us. Well-received collections for all our brands and continued strong expansion both in stores and online operation in France, Italy, Spain and China have helped increase our market share, further strengthening our position in the market,” reveals H&M chief executive Karl-Johan Persson. “We have another exciting year ahead of us, with new opportunities and challenges. We started this year on a good note, with strong sales in both December and January.”
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