H&M increases sales by 12% in 2021 despite store closures

net sales group H&M they increased by 12% in the financial year 2021 in local currency and 6% in Swedish kronor to about € 18,972 million. Gross profit increased to 8,920 million euros, with a gross margin of 52.8%. Net profit reached 1,049 million euros. H & M Group’s net sales in local currency increased by 11% in the fourth quarter.

One of the elements that attracts the attention of the H&M beads by markets is the balance of stores, in which new openings are much lower than closed stores. In the case of Spain, one was opened and nine were closed, with a balance of 146 enterprises. Worldwide, as of November 31, H&M has managed a total of 4,801 stores, with an annual balance of 36 new stores and the closure of 91. The H&M Group’s online sales are still evolving. In the fourth quarter, online sales increased by 10% in local currencies and 6% in Swedish kronor. During the year, online sales increased by 30% in local currency and 24% in Swedish kronor and already reached 32% of the group’s total sales.

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The company, within the framework of a process to adjust its outlets due to the pandemic, proposed to double sales in 2030 by halving its carbon footprint, with a profitability of around 10%. The investments planned for this year amount to about 10 000 million euros. In 2022, H&M will launch in six new markets: the first stores will open in Ecuador, Kosovo and Northern Macedonia, and via franchises in Costa Rica, Guatemala and Cambodia. H&M online launch continues in 2022 with Belarus; Colombia, Kazakhstan, Peru and Ukraine. This expansion of commercial coverage is essential for growth.

For the period between 1 December 2021 and 31 January 2022, local currency sales are expected to increase by 20% compared to the same period last year. “We ended the year strong, with sales at the same level as before the pandemic and profitability better than it has been for several years. Now that we are back to a more normal life situation with a solid financial position and good profitability, we can again focusing fully on growth, ”explained Helena Helmersson, Group CEO.


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