Quarterly Report • Sep 27, 2012
Quarterly Report
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1 December 2011 – 31 August 2012
"H&M continued to gain market share and increased sales by 10 percent in local currencies in the quarter which proves that we have an attractive offering that is appreciated by customers worldwide. Conditions in the fashion retail industry continued to be challenging in many markets – both as regards the weather and the macroeconomic climate. The profit increase in the third quarter was damped by large negative currency translation effects. But viewed over the nine-month period, profit after financial items increased by 11 percent to more than SEK 15.6 billion.
We are continuing our long-term work by constantly making our customer offering even stronger and at the same time building for the future with many new initiatives such as & Other Stories, a new fashion brand that will be launched in separate stores and online during spring 2013. The new brand is aimed at women with an interest in fashion who want to create their own personal style, and focuses on the total look. & Other Stories will offer a broad range of shoes, bags, jewellery, beauty products, lingerie and clothes – everything in carefully selected qualities with great attention to details.
We see significant opportunities for continued growth both in stores and online. We are ramping up the rate of expansion for full-year 2012 to 300 new stores net from the previously planned 275. We are looking forward to taking our first step into the southern hemisphere next year by opening our first store in South America, which will be a flagship store in Santiago de Chile. The online market is increasingly growing, with particularly strong growth in mobile shopping via smartphones and tablets. To accommodate this rapid development, from as early as the beginning of next year we will also offer a completely mobile adapted H&M shop online in H&M's existing eight online markets. Meantime, we have intensified preparations for the rollout of H&M shop online to other markets in the Group. These investments – and as we need more time for the launch of our online shop for the US – mean that the launch of H&M shop online in the US has been moved to summer 2013."
In the first nine months of the financial year, sales including VAT increased by 11 percent in local currencies. Sales in comparable units increased by 2 percent. Converted into SEK, sales including VAT increased by 11 percent to SEK 103,018 m (92,619). Sales excluding VAT increased by 12 percent to SEK 88,297 m (79,047).
In the third quarter, sales including VAT increased by 10 percent in local currencies. Sales in comparable units were unchanged. Converted into SEK, sales increased by 7 percent to SEK 33,568 m (31,511). Sales excluding VAT increased by 7 percent to SEK 28,806 m (26,912).
The Group opened 181 (136) stores and closed 24 (17) stores during the nine-month period. The total number of stores in the Group as per 31 August 2012 thus amounted to 2,629 (2,325), of which 78 franchise stores, 55 COS stores, 55 Monki stores, 21 Weekday stores and 4 Cheap Monday stores.
Gross profit for the Group for the first nine months amounted to SEK 51,854 m (46,997), an increase of 10 percent. This corresponds to a gross margin of 58.7 percent (59.5).
The operating profit amounted to SEK 15,221 m (13,714), an increase of 11 percent. This corresponds to an operating margin of 17.2 percent (17.3).
Operating profit for the nine-month period has been charged with depreciation amounting to SEK 2,761 m (2,465).
Consolidated net interest income was SEK 428 m (426).
Profit after financial items amounted to SEK 15,649 m (14,140), an increase of 11 percent.
The Group's profit after an estimated tax rate of 26.0 percent (26.0) was SEK 11,580 m (10,464) for the nine-month period, which represents earnings per share of SEK 7.00 (6.32), an increase of 11 percent.
Return on shareholders' equity, rolling twelve months, was 44.3 percent (41.1) and return on capital employed, rolling twelve months, was 58.2 percent (54.6).
Gross profit for the Group for the third quarter amounted to SEK 16,771 m (15,766), an increase of 6 percent. This corresponds to a gross margin of 58.2 percent (58.6).
Operating profit for the third quarter amounted to 4,802 m (4,707). This corresponds to an operating margin of 16.7 percent (17.5).
Profit after financial items amounted to SEK 4,895 m (4,850).
Profit after tax was SEK 3,622 m (3,589), corresponding to SEK 2.19 (2.17) per share.
| NINE MONTHS | NINE MONTHS Q3 |
Q3 | ||
|---|---|---|---|---|
| 2012 | 2011 | 2012 | 2011 | |
| (SEK m) | ||||
| Net sales | 88,297 | 79,047 | 28,806 | 26,912 |
| Gross profit | 51,854 | 46,997 | 16,771 | 15,766 |
| gross margin, % | 58.7 | 59.5 | 58.2 | 58.6 |
| Operating profit | 15,221 | 13,714 | 4,802 | 4,707 |
| operating profit, % | 17.2 | 17.3 | 16.7 | 17.5 |
| Net financial items | 428 | 426 | 93 | 143 |
| Profit after financial items | 15,649 | 14,140 | 4,895 | 4,850 |
| Tax | -4,069 | -3,676 | -1,273 | -1,261 |
| Profit for the period | 11,580 | 10,464 | 3,622 | 3,589 |
| Earnings per share, SEK | 7.00 | 6.32 | 2.19 | 2.17 |
In the quarter, H&M continued to gain market share in a very challenging market, which proves that H&M's strong offering is appreciated by customers worldwide. Sales increased by 10 percent in local currencies and were unchanged in comparable units. Converted into SEK, sales including VAT increased by 7 percent. Conditions for the fashion retail industry continued to be challenging in many markets in the third quarter – both as regards the weather and the macroeconomic climate, with austerity measures and restrained consumption. The quarter started with two months of strong sales development in June and July, while sales in August were lower than planned. The company considers weaker sales in August to have been primarily due to the extreme heat wave in a number of markets in Europe.
In the quarter, the gross margin amounted to 58.2 percent (58.6). H&M's gross margin is a result of many different factors, internal as well as external, and is also affected by the decisions that H&M makes in line with its strategy to always have the best customer offering in each individual market. For purchases made for the third quarter, an easing of cotton prices had a neutral to positive effect on purchasing costs compared to the corresponding purchasing period the previous year. This has, however, been offset to some extent by cost inflation, primarily in Asia and by a stronger US dollar.
Markdowns in relation to sales were at the same level as in the corresponding quarter last year.
H&M's long-term investments - aimed at broadening the Group's total offering continues including work on the new store chain & Other Stories which will be launched in spring 2013. These long-term investments represented a slightly higher proportion of cost in relation to sales in the third quarter compared to the second quarter 2012.
Cost control in the Group remains good. Selling and administrative expenses in the quarter amounted to SEK 11,969 m (11,059), an increase of 8 percent which is mainly explained by the expansion. In local currencies, the increase was 11 percent.
During the third quarter, the strong appreciation of the Swedish krona primarily against the euro, led to large negative currency translation effects on sales and profits in the quarter when converting local currencies into SEK, H&M's reporting currency. Profit after financial items has consequently been negatively affected by approximately SEK 200 m compared to the third quarter 2011.
The stock-in-trade increased by 1 percent compared to the same time last year and amounted to SEK 13,501 m (13,310). In local currencies, the increase was 3 percent. The level and the balance of the stock-in-trade as at 31 August 2012 are deemed to be good. The stock-in-trade represents 11.3 percent (12.2) of sales excluding VAT for rolling twelve month period. The stock-in-trade was 25.5 percent (24.9) of total assets.
Consolidated total assets as per 31 August 2012 amounted to SEK 52,974 m (53,532), a decrease of 1 percent compared to the same time the previous year.
The current operations generated a positive cash flow of SEK 13,044 m (11,226). Cash flow for the period was also affected by dividends by SEK -15,723 m (-15,723), investments in fixed assets of SEK -4,313 m (-3,288) and by changes in short-term investments with a duration of four to twelve months of SEK 5,525 m (4,791). During the nine-month period, the Group generated a cash flow of SEK -1,454 m (-3,024). Liquid funds and short-term investments thus amounted to SEK 13,552 m (16,895).
The equity/assets ratio was 72.3 percent (71.4) and the share of risk-bearing capital was 74.0 percent (72.9).
Shareholders' equity apportioned on the outstanding 1,655,072,000 (1,655,072,000) shares as per 31 August 2012 was SEK 23.13 (23.09).
H&M remains positive as regards to the future expansion and the Group's business opportunities.
H&M's growth target remains intact. The growth target is to increase the number of stores by 10 – 15 percent per year with continued high profitability, while at the same time increasing sales in comparable units.
For the 2011/2012 financial year the expansion plan is being ramped up to 300 new stores net from the previously planned 275. China and the US are expected to be the largest expansion markets for H&M in 2012. There are also still great opportunities for expansion in markets such as Russia, Italy, Poland and the UK.
In 2012 five new markets will be added. H&M opened its first H&M store in Bulgaria in March and in Latvia and Malaysia in September. Thailand will open its first H&M store via franchise by the end of September. The first H&M store in Mexico will open towards the end of the financial year.
Expansion continues for the Group's other brands COS, Monki, Weekday and Cheap Monday. COS, for example, will open stores in six new markets in 2012. In the third quarter the first COS stores opened in Poland, Hong Kong and Austria, while Weekday opened its first store in the Netherlands. During the autumn COS and Monki will open their first stores on the Chinese mainland and Kuwait will also get its first COS store (via franchise). During the spring 2013, COS will open its first store in Norway, Monki and Weekday will open its first stores in Japan and Monki will open its first store in France. In addition to this, Weekday will launch online shopping in 18 countries in 2013. H&M Home will also continue to expand.
In spring 2013 the Group will launch & Other Stories, a new fashion brand that will be launched in separate stores and online in selected markets in Europe. The new brand focuses on the total look and is aimed at women with an interest in fashion who want to create their own personal style. & Other Stories will offer a broad range of shoes, bags, jewellery, beauty products, lingerie and clothes in a wide range of prices in a higher price segment with carefully selected qualities and great attention to details. As with the rest of the H&M Group, & Other Stories will continue to offer the best price for comparable items. The various collections are being created by a group of in-house designers from studios in Paris and Stockholm.
The online market is increasingly growing, with particularly strong growth in mobile shopping via smartphones and tablets. To accommodate this rapid development, from as early as the beginning of next year the Group will also offer a completely mobile adapted H&M shop online in H&M's existing eight online markets. Meantime, H&M has intensified work on the rollout of H&M shop online to other markets in the Group. As a result of these investments – and as more time is needed to adapt H&M shop online for the US market – the launch of H&M shop online in the US has been moved from autumn 2012 to summer 2013.
As previously communicated, the first H&M store in South America will open in Santiago de Chile during the first half of 2013. The store will be a flagship store in the best location in the Costanera Center shopping mall.
The first three H&M stores in Tallinn, Estonia will open in autumn 2013. During autumn 2013 the first three H&M stores will also open in Vilnius in Lithuania. As communicated previously, Indonesia will become a new franchise market in 2013.
For the financial year 2011/2012 the tax rate is expected to be in the range of 25 – 26 percent, depending on the results of the subsidiaries in each country.
The parent company's external sales amounted to SEK 5 m (4) for the first nine months of the financial year. Profit after financial items amounted to SEK 2,824 m (3,741). Investments in fixed assets amounted to SEK 87 m (77).
Sales in the period 1 – 25 September 2012 increased by 14 percent in local currencies compared to the same period last year (calendar adjusted).
The Group applies the International Financial Reporting Standards (IFRS) as adopted by the EU. This report has been prepared according to IAS 34 Interim Financial Reporting as well as the Swedish Annual Accounts Act.
The accounting principles and calculation methods applied in this report are unchanged from those used in the preparation of the Annual Report and Consolidated Financial Statements for 2010/2011 which is described in Note 1 – Accounting principles.
The parent company applies the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities, which essentially involves applying IFRS. In accordance with RFR 2 the parent company does not apply IAS 39 or IAS 38.57.
A number of factors may affect H&M's results and business. Most of these can be dealt with through internal routines, while certain others are affected more by external influences. There are risks and uncertainties related to fashion, weather situations, negative macro-economic changes, changes in consumer behaviour, climate changes, trade interventions, external factors in production countries and foreign currency, but also in connection with expansion into new markets, the launch of new concepts and how the brand is managed.
For a more detailed description of risks and uncertainties, refer to the Administration Report and to Note 2 in the Annual Report and Consolidated Accounts for 2011. There were no significant changes in risks and uncertainties during the period.
Return on equity: Profit for the period in relation to average shareholders' equity.
Return on capital employed: Profit after financial items plus interest expense in relation to average shareholders' equity plus average interest-bearing liabilities.
Share of risk-bearing capital: Shareholders' equity plus deferred tax liability in relation to the balance sheet total.
Equity/assets ratio: Shareholders' equity in relation to the balance sheet total.
Equity per share: Shareholders' equity divided by number of shares.
P/E ratio: Price per share divided by earnings per share.
Comparable units: Comparable units comprise the stores and the internet and catalogue sales countries that have been in operation for at least one financial year. H&M's financial year is from 1 December to 30 November.
All figures within parenthesis refer to the corresponding period or point of time the previous year.
| 30 January 2013* | Full-year report 2012, 1 December 2011 – 30 November 2012 | |||
|---|---|---|---|---|
* Please note that the date of the full-year report has been changed from 31 January 2013 to 30 January 2013.
Stockholm, 26 September 2012 Board of Directors
H & M Hennes & Mauritz AB (publ), corporate identity number 556042-7220
We have reviewed the interim report for H & M Hennes & Mauritz AB (publ) as of 31 August 2012 and for the nine-month period which ended on this date. It is the responsibility of the Board of Directors and the Managing Director to prepare and present this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim report based on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope compared with the focus and scope of an audit conducted in accordance with the International Standards on Auditing and the generally accepted auditing practices.
The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the opinion expressed based on a review does not provide the same level of assurance as an opinion expressed on the basis of an audit.
On the basis of our review, nothing has come to our attention that causes us to believe that the interim report, in all material aspects, was not prepared in accordance with IAS 34 and the Swedish Annual Accounts Act in the case of the Group and in accordance with the Annual Accounts Act in the case of the parent company.
Stockholm, 26 September 2012
Ernst & Young AB
Erik Åström Authorised Public Accountant
The information in this Interim Report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under Sweden's Securities Market Act. It will be released for publication at 8.00 (CET) on 27 September 2012.
| Nils Vinge, IR | +46-8-796 52 50 |
|---|---|
| Jyrki Tervonen, CFO | +46-8-796 52 77 |
| Karl-Johan Persson, CEO | +46-8-796 52 33 |
| Switchboard | +46-8-796 55 00 |
H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46-8-796 55 00, Fax: +46-8-24 80 78, E-mail: [email protected] Registered office: Stockholm, Reg. No. 556042-7220
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on NASDAQ OMX Stockholm. The company's business concept is to offer fashion and quality at the best price. In addition to H&M, the group includes the brands COS, Monki, Weekday and Cheap Monday as well as H&M Home. The H&M Group has more than 2,600 stores in 46 markets including franchise markets. In 2011, sales including VAT were SEK 128,810 million and the number of employees was more than 94,000. For further information, visit www.hm.com.
| 1 Dec 2011- | 1 Dec 2010- | 1 June 2012- | 1 June 2011- | 1 Dec 2010- | |
|---|---|---|---|---|---|
| 31 Aug 2012 | 31 Aug 2011 | 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 | |
| Sales including VAT | 103,018 | 92,619 | 33,568 | 31,511 | 128,810 |
| Sales excluding VAT | 88,297 | 79,047 | 28,806 | 26,912 | 109,999 |
| Cost of goods sold | -36,443 | -32,050 | -12,035 | -11,146 | -43,852 |
| GROSS PROFIT | 51,854 | 46,997 | 16,771 | 15,766 | 66,147 |
| Gross margin, % | 58.7 | 59.5 | 58.2 | 58.6 | 60.1 |
| Selling expenses | -34,097 | -30,888 | -11,158 | -10,292 | -42,517 |
| Administrative expenses | -2,536 | -2,395 | -811 | -767 | -3,251 |
| OPERATING PROFIT | 15,221 | 13,714 | 4,802 | 4,707 | 20,379 |
| Operating margin, % | 17.2 | 17.3 | 16.7 | 17.5 | 18.5 |
| Interest income | 430 | 430 | 93 | 145 | 568 |
| Interest expense | -2 | -4 | 0 | -2 | -5 |
| PROFIT AFTER FINANCIAL ITEMS | 15,649 | 14,140 | 4,895 | 4,850 | 20,942 |
| Tax | -4,069 | -3,676 | -1,273 | -1,261 | -5,121 |
| PROFIT FOR THE PERIOD | 11,580 | 10,464 | 3,622 | 3,589 | 15,821 |
All profit is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| Earnings per share, SEK Number of shares, thousands |
7.00 1,655,072 |
6.32 1,655,072 |
2.19 1,655,072 |
2.17 1,655,072 |
9.56 1,655,072 |
|---|---|---|---|---|---|
| Depreciation, total | 2,761 | 2,465 | 921 | 831 | 3,262 |
| of which cost of goods sold | 310 | 277 | 103 | 93 | 366 |
| of which selling expenses | 2,284 | 2,037 | 763 | 687 | 2,698 |
| of which administrative expenses | 167 | 151 | 55 | 51 | 198 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 9,894 | 9,765 | 1,759 | 4,268 | 15,703 |
|---|---|---|---|---|---|
| OTHER COMPREHENSIVE INCOME | -1,686 | -699 | -1,863 | 679 | -118 |
| Tax attributable to other comprehensive income | -37 | 138 | 12 | 4 | 30 |
| Change in hedging reserves | 142 | -530 | -47 | -14 | -113 |
| Translation differences | -1,791 | -307 | -1,828 | 689 | -35 |
| Other comprehensive income | |||||
| PROFIT FOR THE PERIOD | 11,580 | 10,464 | 3,622 | 3,589 | 15,821 |
| 31 Aug 2012 | 31 Aug 2011 | 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 | |
| 1 Dec 2011- | 1 Dec 2010- | 1 June 2012- | 1 June 2011- | 1 Dec 2010- |
All comprehensive profit is attributable to the shareholders of the parent company H & M Hennes & Mauritz AB.
| 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 | |
|---|---|---|---|
| ASSETS | |||
| Fixed assets | |||
| Intangible fixed assets | 1,272 | 1,125 | 1,035 |
| Tangible fixed assets | 17,503 | 16,083 | 17,393 |
| Financial assets | 2,036 | 1,750 | 1,842 |
| 20,811 | 18,958 | 20,270 | |
| Current assets | |||
| Stock-in-trade | 13,501 | 13,310 | 13,819 |
| Current receivables | 5,110 | 4,369 | 4,822 |
| Short-term investments, 4-12 months | 1,408 | 3,372 | 6,958 |
| Liquid funds | 12,144 | 13,523 | 14,319 |
| 32,163 | 34,574 | 39,918 | |
| TOTAL ASSETS | 52,974 | 53,532 | 60,188 |
| EQUITY AND LIABILITIES | |||
| Equity | 38,275 | 38,214 | 44,104 |
| Long-term liabilities* | 1,333 | 1,075 | 1,327 |
| Current liabilities** | 13,366 | 14,243 | 14,757 |
| TOTAL EQUITY AND LIABILITIES | 52,974 | 53,532 | 60,188 |
* Only provisions for pensions are interest-bearing.
** No current liabilities are interest-bearing.
| 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 | |
|---|---|---|---|
| Shareholders' equity at the beginning of the period | 44,104 | 44,172 | 44,172 |
| Adjustment of opening balance* | - | - | -48 |
| Total comprehensive income for the period | 9,894 | 9,765 | 15,703 |
| Dividend | -15,723 | -15,723 | -15,723 |
| Shareholders' equity at the end of the period | 38,275 | 38,214 | 44,104 |
* Adjustment of pension obligations related to prior years.
| 1 Dec 2011- | 1 Dec 2010- | |
|---|---|---|
| 31 Aug 2012 | 31 Aug 2011 | |
| Current operations | ||
| Profit after financial items* | 15,649 | 14,140 |
| Provisions for pensions | 49 | 15 |
| Depreciation | 2,761 | 2,465 |
| Tax paid | -4,917 | -3,819 |
| Cash flow from current operations before changes in working capital |
13,542 | 12,801 |
| Cash flow from changes in working capital | ||
| Current receivables | -191 | -146 |
| Stock-in-trade | -54 | -1,867 |
| Current liabilities | -253 | 438 |
| CASH FLOW FROM CURRENT OPERATIONS | 13,044 | 11,226 |
| Investment activities | ||
| Investment in intangible fixed assets | -481 | -74 |
| Investment in tangible fixed assets | -3,832 | -3,214 |
| Change in short-term investments, 4 - 12 months | 5,525 | 4,791 |
| Other investments | 13 | -30 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | 1,225 | 1,473 |
| Financing activities | ||
| Dividend | -15,723 | -15,723 |
| CASH FLOW FROM FINANCING ACTIVITIES | -15,723 | -15,723 |
| CASH FLOW FOR THE PERIOD | -1,454 | -3,024 |
| Liquid funds at beginning of the financial year | 14,319 | 16,691 |
| Cash flow for the period | -1,454 | -3,024 |
| Exchange rate effect | -721 | -144 |
| Liquid funds at end of the period** | 12,144 | 13,523 |
* Interest paid for the Group amounts to SEK 2 m (4).
** Liquid funds and short-term investments 4-12 months at the end of the period amounted to SEK 13,552 m (16,895).
| SEK m | SEK m | Change in % | No. of stores | New | Closed | ||
|---|---|---|---|---|---|---|---|
| COUNTRY | 2012 | 2011 | SEK | Local currency |
31 Aug 2012 | stores | stores |
| Sweden | 6,158 | 6,198 | -1 | -1 | 174 | 1 | |
| Norway | 4,163 | 3,933 | 6 | 5 | 105 | 1 | |
| Denmark | 3,152 | 3,039 | 4 | 6 | 91 | 1 | |
| United Kingdom | 7,608 | 6,496 | 17 | 13 | 217 | 8 | 4 |
| Switzerland | 4,303 | 4,394 | -2 | -3 | 82 | 3 | 1 |
| Germany | 22,291 | 21,589 | 3 | 5 | 400 | 13 | 7 |
| Netherlands | 4,889 | 5,074 | -4 | -1 | 122 | 4 | |
| Belgium | 2,443 | 2,318 | 5 | 8 | 70 | 5 | 1 |
| Austria | 3,507 | 3,439 | 2 | 4 | 67 | 2 | 1 |
| Luxembourg | 277 | 280 | -1 | 1 | 10 | ||
| Finland | 1,829 | 1,767 | 4 | 6 | 50 | 5 | 2 |
| France | 7,249 | 6,677 | 9 | 11 | 175 | 8 | 1 |
| USA | 9,204 | 6,812 | 35 | 27 | 250 | 19 | 2 |
| Spain | 4,357 | 4,290 | 2 | 4 | 137 | 7 | 2 |
| Poland | 2,147 | 1,986 | 8 | 18 | 97 | 8 | |
| Czech Republic | 552 | 515 | 7 | 13 | 27 | 3 | |
| Portugal | 655 | 674 | -3 | -1 | 23 | ||
| Italy | 3,476 | 3,123 | 11 | 14 | 97 | 10 | |
| Canada | 2,264 | 1,990 | 14 | 10 | 60 | 2 | |
| Slovenia | 352 | 357 | -1 | 1 | 12 | ||
| Ireland | 425 | 368 | 15 | 18 | 15 | ||
| Hungary | 438 | 350 | 25 | 39 | 24 | 4 | |
| Slovakia | 241 | 176 | 37 | 40 | 12 | 2 | |
| Greece | 631 | 555 | 14 | 16 | 24 | 2 | |
| China | 3,803 | 2,441 | 56 | 33 | 109 | 27 | |
| Japan | 1,692 | 1,013 | 67 | 54 | 19 | 4 | |
| Russia | 1,537 | 1,097 | 40 | 42 | 34 | 15 | |
| South Korea | 402 | 276 | 46 | 42 | 9 | 3 | |
| Turkey | 321 | 201 | 60 | 71 | 8 | ||
| Romania | 440 | 193 | 128 | 144 | 16 | 5 | |
| Croatia | 415 | 125 | 232 | 244 | 10 | 4 | |
| Singapore | 302 | 1 | |||||
| Bulgaria | 79 | 4 | 4 | ||||
| Franchise | 1,416 | 873 | 62 | 59 | 78 | 11 | 3 |
| Total | 103,018 | 92,619 | 11 | 11 | 2,629 | 181 | 24 |
| SEK m | SEK m | Change in % | No. of stores | New | Closed | ||
|---|---|---|---|---|---|---|---|
| COUNTRY | Q3-2012 | Q3-2011 | SEK | Local currency |
31 Aug 2012 | stores | stores |
| Sweden | 2,080 | 2,120 | -2 | -2 | 174 | ||
| Norway | 1,437 | 1,403 | 2 | 4 | 105 | ||
| Denmark | 987 | 1,021 | -3 | 4 | 91 | 1 | |
| United Kingdom | 2,490 | 2,260 | 10 | 7 | 217 | 3 | 1 |
| Switzerland | 1,350 | 1,453 | -7 | 1 | 82 | 1 | |
| Germany | 6,933 | 7,265 | -5 | 1 | 400 | 7 | 4 |
| Netherlands | 1,473 | 1,674 | -12 | -5 | 122 | 2 | |
| Belgium | 782 | 772 | 1 | 9 | 70 | ||
| Austria | 1,099 | 1,117 | -2 | 6 | 67 | 1 | |
| Luxembourg | 84 | 91 | -8 | -1 | 10 | ||
| Finland | 646 | 649 | 0 | 7 | 50 | 2 | 1 |
| France | 2,321 | 2,207 | 5 | 13 | 175 | 2 | |
| USA | 3,183 | 2,382 | 34 | 25 | 250 | 11 | |
| Spain | 1,368 | 1,404 | -3 | 4 | 137 | 1 | 1 |
| Poland | 700 | 688 | 2 | 13 | 97 | 2 | |
| Czech Republic | 180 | 177 | 2 | 13 | 27 | ||
| Portugal | 215 | 230 | -7 | 0 | 23 | ||
| Italy | 1,088 | 974 | 12 | 20 | 97 | 3 | |
| Canada | 808 | 741 | 9 | 6 | 60 | 1 | |
| Slovenia | 114 | 117 | -3 | 4 | 12 | ||
| Ireland | 137 | 125 | 10 | 18 | 15 | ||
| Hungary | 148 | 119 | 24 | 42 | 24 | 1 | |
| Slovakia | 81 | 58 | 40 | 47 | 12 | ||
| Greece | 200 | 190 | 5 | 12 | 24 | 1 | |
| China | 1,277 | 861 | 48 | 26 | 109 | 8 | |
| Japan | 543 | 312 | 74 | 63 | 19 | ||
| Russia | 592 | 416 | 42 | 50 | 34 | 7 | |
| South Korea | 133 | 104 | 28 | 27 | 9 | 2 | |
| Turkey | 116 | 71 | 63 | 68 | 8 | ||
| Romania | 152 | 90 | 69 | 90 | 16 | 1 | |
| Croatia | 155 | 63 | 146 | 161 | 10 | ||
| Singapore | 100 | 1 | |||||
| Bulgaria | 44 | 4 | 1 | ||||
| Franchise | 552 | 357 | 55 | 42 | 78 | 4 | 1 |
| Total | 33,568 | 31,511 | 7 | 10 | 2,629 | 62 | 8 |
| 2012 | 2011 | 2010 | 2009 | 2008 | |
|---|---|---|---|---|---|
| Sales including VAT, SEK m | 103,018 | 92,619 | 92,174 | 85,939 | 73,193 |
| Sales excluding VAT, SEK m | 88,297 | 79,047 | 78,772 | 73,382 | 62,222 |
| Change from previous year, % | 11.7 | 0.3 | 7.3 | 17.9 | 12.1 |
| Operating profit, SEK m | 15,221 | 13,714 | 17,599 | 13,735 | 13,319 |
| Operating margin, % | 17.2 | 17.3 | 22.3 | 18.7 | 21.4 |
| Depreciation for the period, SEK m | 2,761 | 2,465 | 2,332 | 2,158 | 1,745 |
| Profit after financial items, SEK m | 15,649 | 14,140 | 17,830 | 14,111 | 14,076 |
| Profit after tax, SEK m | 11,580 | 10,464 | 13,194 | 10,230 | 10,205 |
| Liquid funds and short-term investments, SEK m | 13,552 | 16,895 | 21,362 | 16,238 | 17,786 |
| Stock-in-trade, SEK m | 13,501 | 13,310 | 10,545 | 10,215 | 7,930 |
| Equity, SEK m | 38,275 | 38,214 | 39,352 | 34,612 | 30,828 |
| Number of shares, thousands* | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 | 1,655,072 |
| Earnings per share, SEK* | 7.00 | 6.32 | 7.97 | 6.18 | 6.17 |
| Shareholders' equity per share, SEK* | 23.13 | 23.09 | 23.78 | 20.91 | 18.63 |
| Cash flow from current operations | |||||
| per share, SEK* | 7.88 | 6.78 | 9.78 | 6.26 | 7.23 |
| Share of risk-bearing capital, % | 74.0 | 72.9 | 75.8 | 76.2 | 75.1 |
| Equity/assets ratio, % | 72.3 | 71.4 | 72.3 | 72.8 | 73.5 |
| Total number of stores | 2,629 | 2,325 | 2,078 | 1,840 | 1,618 |
| Rolling twelve months | |||||
| Earnings per share, SEK* | 10.23 | 9.64 | 11.69 | 9.26 | 8.98 |
| Return on shareholders' equity, % | 44.3 | 41.1 | 52.3 | 46.8 | 50.7 |
| Return on capital employed, % | 58.2 | 54.6 | 69.3 | 64.5 | 68.9 |
* Before and after dilution. The number of shares has been adjusted for all periods because of the two-for-one share split carried out by H&M in 2010.
Definition on key figures see page 5.
| 2009 | 2010 | 2011 | 2012 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
| Sales including VAT, SEK m | 27,587 32,758 29,095 31,604 31,475 34,792 28,708 | 32,400 31,511 36,191 | 32,503 | 36,947 | 33,568 | ||||||||
| Sales excluding VAT, SEK m | 23,545 28,011 24,846 27,033 26,893 29,711 24,503 | 27,632 26,912 30,952 | 27,832 | 31,658 | 28,806 | ||||||||
| Change from previous year, % | 13 | 6 | 7 | 2 | 14 | 6 | -1 | 2 | 0 | 4 | 14 | 15 | 7 |
| Operating profit, SEK m | 4,700 | 7,909 | 4,978 | 6,965 | 5,656 | 7,060 | 3,408 | 5,599 | 4,707 | 6,665 | 3,526 | 6,893 | 4,802 |
| Operating margin, % | 20.0 | 28.2 | 20.0 | 25.8 | 21.0 | 23.8 | 13.9 | 20.3 | 17.5 | 21.5 | 12.7 | 21.8 | 16.7 |
| Depreciation for the period, SEK m | 722 | 672 | 772 | 783 | 777 | 729 | 808 | 826 | 831 | 797 | 911 | 929 | 921 |
| Profit after financial items, SEK m | 4,773 | 7,992 | 5,055 | 7,040 | 5,735 | 7,178 | 3,538 | 5,752 | 4,850 | 6,802 | 3,701 | 7,053 | 4,895 |
| Profit after tax, SEK m | 3,460 | 6,154 | 3,741 | 5,209 | 4,244 | 5,487 | 2,618 | 4,257 | 3,589 | 5,357 | 2,739 | 5,219 | 3,622 |
| Liquid assets*, SEK m | 16,238 22,025 26,200 18,992 21,362 24,858 24,355 | 15,207 16,895 21,277 | 22,029 | 13,543 | 13,552 | ||||||||
| Stock-in-trade, SEK m | 10,215 10,240 | 8,402 | 8,562 10,545 11,487 10,822 | 10,414 13,310 13,819 | 12,397 | 11,299 | 13,501 | ||||||
| Equity, SEK m | 34,612 40,613 43,746 36,064 39,352 44,172 45,587 | 33,946 38,214 44,104 | 45,852 | 36,516 | 38,275 | ||||||||
| Earnings per share, SEK** | 2.09 | 3.72 | 2.26 | 3.15 | 2.56 | 3.32 | 1.58 | 2.57 | 2.17 | 3.24 | 1.65 | 3.15 | 2.19 |
| Equity per share, SEK** | 20.91 | 24.54 | 26.43 | 21.79 | 23.78 | 26.69 | 27.54 | 20.51 | 23.09 | 26.65 | 27.70 | 22.06 | 23.13 |
| Cash flow from current | |||||||||||||
| operations per share, SEK** | 1.91 | 4.60 | 3.25 | 4.30 | 2.23 | 3.42 | 0.46 | 4.70 | 1.62 | 3.75 | 1.34 | 5.11 | 1.43 |
| Share of risk-bearing capital, % | 76.2 | 78.5 | 80.8 | 75.9 | 75.8 | 76.2 | 81.4 | 73.0 | 72.9 | 74.9 | 79.1 | 73.5 | 74.0 |
| Equity/assets ratio, % | 72.8 | 74.7 | 77.2 | 71.8 | 72.3 | 74.6 | 79.9 | 71.3 | 71.4 | 73.3 | 77.6 | 71.5 | 72.3 |
| Total number of stores | 1,840 | 1,988 | 1,992 | 2,062 | 2,078 | 2,206 | 2,212 | 2,297 | 2,325 | 2,472 | 2,491 | 2,575 | 2,629 |
| Rolling 12 months | |||||||||||||
| Earnings per share, SEK** | 9.26 | 9.90 | 10.61 | 11.22 | 11.69 | 11.29 | 10.61 | 10.03 | 9.64 | 9.56 | 9.63 | 10.21 | 10.23 |
| Return on shareholders' equity, % | 46.8 | 42.2 | 41.4 | 54.8 | 52.3 | 44.1 | 39.3 | 47.4 | 41.1 | 35.8 | 34.9 | 48.0 | 44.3 |
| Return on capital employed, % | 64.5 | 56.7 | 55.4 | 72.9 | 69.3 | 58.7 | 52.3 | 63.0 | 54.6 | 47.1 | 45.8 | 63.0 | 58.2 |
| Stock-in-trade in % of turnover | 10.2 | 10.1 | 8.2 | 8.3 | 9.9 | 10.6 | 10.0 | 9.6 | 12.2 | 12.6 | 10.9 | 9.6 | 11.3 |
* Liquid funds and short-term investments
** Before and after dilution. The number of shares has been adjusted for all periods because of the two-for-one share split carried out by H&M in 2010.
Definitions on key figures see page 5.
| 1 Dec 2011- 31 Aug 2012 |
1 Dec 2010- 31 Aug 2011 |
|
|---|---|---|
| Nordic region | ||
| External net sales | 12,202 | 12,037 |
| Operating profit | 350 | 301 |
| Operating margin, % | 2.9 | 2.5 |
| Eurozone excluding Finland | ||
| External net sales | 42,747 | 41,073 |
| Operating profit | 469 | 42 |
| Operating margin, % | 1.1 | 0.1 |
| Rest of the World | ||
| External net sales | 33,348 | 25,937 |
| Operating profit | 2,087 | 1,166 |
| Operating margin, % | 6.3 | 4.5 |
| Group Functions | ||
| Net sales to other segments | 45,720 | 43,465 |
| Operating profit | 12,315 | 12,205 |
| Eliminations | -45,720 | -43,465 |
| Net sales to other segments | ||
| Total | ||
| External net sales | 88,297 | 79,047 |
| Operating profit | 15,221 | 13,714 |
| Operating margin, % | 17.2 | 17.3 |
| 1 Dec 2011- | 1 Dec 2010- | 1 June 2012- | 1 June 2011- | 1 Dec 2010- | |
|---|---|---|---|---|---|
| 31 Aug 2012 | 31 Aug 2011 | 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 | |
| External sales excluding VAT | 5 | 4 | 1 | 1 | 24 |
| Internal sales excluding VAT* | 5,295 | 4,456 | 1,762 | 1,709 | 6,958 |
| GROSS PROFIT | 5,300 | 4,460 | 1,763 | 1,710 | 6,982 |
| Selling expenses | -1,822 | -1,473 | -355 | -315 | -2,235 |
| Administrative expenses | -2,419 | -1,899 | -790 | -641 | -2,671 |
| OPERATING PROFIT | 1,059 | 1,088 | 618 | 754 | 2,076 |
| Dividend from subsidiaries | 1,660 | 2,554 | 113 | 532 | 14,224 |
| Interest income | 105 | 99 | 8 | 18 | 151 |
| Interest expense | 0 | 0 | 0 | 0 | 0 |
| PROFIT AFTER FINANCIAL ITEMS | 2,824 | 3,741 | 739 | 1,304 | 16,451 |
| Year-end appropriations | - | - | - | - | -9 |
| Tax | -306 | -312 | -165 | -203 | -596 |
| PROFIT FOR THE PERIOD | 2,518 | 3,429 | 574 | 1,101 | 15,846 |
* Includes royalty received from Group companies
| 1 Dec 2011- | 1 Dec 2010- | 1 June 2012- | 1 June 2011- | 1 Dec 2010- | |
|---|---|---|---|---|---|
| 31 Aug 2012 | 31 Aug 2011 | 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 | |
| PROFIT FOR THE PERIOD | 2,518 | 3,429 | 574 | 1,101 | 15,846 |
| Other comprehensive income | - | - | - | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 2,518 | 3,429 | 574 | 1,101 | 15,846 |
| ASSETS | 31 Aug 2012 | 31 Aug 2011 | 30 Nov 2011 |
|---|---|---|---|
| Fixed assets | |||
| Tangible fixed assets | 446 | 418 | 441 |
| Financial fixed assets | 1,374 | 1,797 | 1,843 |
| 1,820 | 2,215 | 2,284 | |
| Current assets | |||
| Current receivables | 1,410 | 709 | 10,675 |
| Short-term investments, 4-12 months | 904 | 2,264 | 5,038 |
| Liquid funds | 427 | 453 | 678 |
| 2,741 | 3,426 | 16,391 | |
| TOTAL ASSETS | 4,561 | 5,641 | 18,675 |
| EQUITY AND LIABILITIES | |||
| Equity | 3,839 | 4,627 | 17,044 |
| Untaxed reserves | 128 | 119 | 128 |
| Long-term liabilities* | 240 | 223 | 240 |
| Current liabilities** | 354 | 672 | 1,263 |
| TOTAL EQUITY AND LIABILITIES | 4,561 | 5,641 | 18,675 |
* Relates to provisions for pensions.
** No current liabilities are interest-bearing.
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