STOCKHOLM--Hennes & Mauritz AB on Thursday said it plans to
expand its range of retail outlets by opening more sports-clothing
and home-furnishing shops as well as online fashion stores this
year after reporting a 6.1% rise in fourth-quarter net profit.
H&M, the world's second biggest clothes retailer by sales,
after Zara-owner Inditex S.A. (ITX), said it plans to open more
than one store every day this year/
The Stockholm-based retailer said net profit increased to 5.61
billion Swedish kronor ($868 million) in the three months to Nov.
30, from SEK5.29 billion a year earlier on a 12% rise in revenue to
SEK36,495. Analysts had expected net profit of around SEK6.02
billion.
Quarterly revenue in comparable stores increased by 3% while the
group's gross operating profit margin slipped to 60.8% of revenue
from 61.6% because of unfavorable exchange rates in the period.
"Although there are still macroeconomic challenges in several of
our markets, we are optimistic about 2014," Chief Executive
Karl-Johan Persson said.
To meet the threat from budget retailers like Primark and
Forever 21, H&M is working to broaden its offering, through the
launch of new store concepts and product lines like H&M Sport
and H&M Home.
In 2014, H&M said it would also launch online sales in
France, and make a foray "an additional three large online
markets." It plans also to open its first physical stores in the
Philippines and Australia, as it continues its southward expansion.
The first H&M store in the southern hemisphere opened in
Santiago, Chile, last year.
Write to Jens Hansegard at jens.hansegard@wsj.com and Niclas
Rolander at niclas.rolander@wsj.com
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