H&M POSTS DROP IN PROFIT, TO LAUNCH ANOTHER BRAND NEXT YEAR
For the nine month period from December 1, 2016 to August 31, 2017, the H&M group’s sales including VAT increased by 7 percent to 173,290 million Swedish krona (21,237 million dollars). The company said, sales excluding VAT amounted to 149,597 million Swedish krona (18,335 million dollars), an increase of 7 percent and in local currencies sales increased by 4 percent. In the third quarter, the H&M group’s sales including VAT increased by 5 percent to 59,383 million Swedish krona (7,277 million dollars), while sales excluding VAT amounted to 51,229 million Swedish krona (6,278 million dollars), an increase of 5 percent or 4 percent inn local currencies. As a part of its growth plan, in addition to Arket, H&M plans to launch one more brand next year.
Commenting on the company’s trading, Karl-Johan Persson, H&M CEO said in a media statement: “The fashion retail sector is growing and is in a period of extensive and rapid change as a result of ongoing digitalisation. Creating and launching new brands is an important part of our growth strategy, and next year we plan to launch another new brand. We are looking forward to our capital markets day in February 2018, at which we will have the opportunity to tell more about how we are addressing the significant changes taking place in the industry and how we will further strengthen our position going forward.”
Originally published on: Fashion United
Author: Prachi Singh
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