H&M Expects Sales Growth In Fiscal Year 2017 To 10-15%

According to the world clothing shoes and hats net, the world's second largest

The retailer H&M Hennes&Mauritz AB (HM-B.ST) Hayne Maurice group released its four quarter and full year results on Tuesday. The company said it benefited from fast growth online sales, and the group raised the expected growth rate of fixed exchange rate growth in the current 2017 fiscal year to 10-15%, much higher than 7% in 2016.

Stimulated by new growth targets, H&M Hennes&Mauritz AB (HM-B.ST)

The group's shares surged nearly 6% in early trading on Tuesday, and at 12:01 AM Stockholm time, 250 Swedish Swedish kronor, up 5.57%.

As of the four quarter of November 30, 2016, sales of Hennes&Mauritz AB Hayne Maurice group, including value added tax, recorded an increase of 7% in fixed exchange rate. The actual sales increase, including VAT, increased from 8% to 61 billion 98 million krona, which was 56 billion 477 million Swedish kronor in the same period last year, excluding value added tax. The fourth quarter sales increased from 48 billion 694 million kronor in 2015 to 52 billion 720 million krona, an increase of 8.3%.

In the fourth quarter, the Hennes&Mauritz AB Hayne Maurice Group recorded a SEK 30 billion 27 million gross profit, which was 7.3% higher than the 27 billion 997 million Swedish kronor in the 2015 quarter of fiscal year, with a decrease of 50 basis points to 57%. The group's pre tax profits recorded 7 billion 409 million Swedish kronor during the period, a 3.7% increase over the same period in 2015 compared with SEK in 2015, far exceeding the market expected 7 billion 40 million kronor. The group's after tax profit was 5 billion 914 million Swedish krone, and the earnings per share after tax were Swedish Swedish kronor, a year-on-year increase, compared with the Swedish quarter in the fourth quarter of the year.

In addition to the unexpected profit increase, the fourth quarter

They are also stationed in two new markets in Cyprus and New Zealand, while conducting e-commerce in Canada and South Korea.

Karl-Johan Persson, CEO of Hennes&Mauritz AB Hayne Maurice group, said the industry remained challenging in 2016, but the group had long-term profitability and sustained profitability growth capability.

In 2016, Hennes&Mauritz AB Hayne Maurice group added 427 new stores worldwide, adding three new markets and 11 online markets.

This means that the group currently has 64 markets, including 35 online businesses.

In the 2016 fiscal year, the group also added 13000 employees to 161000.

In the 2016 fiscal year ending in November 30, 2016, the Hennes&Mauritz AB Hayne Maurice Group recorded a sales growth of 6.2% to 222 billion 865 million kronor, and 2099.21 Swedish Krona in 2015. The fixed exchange rate increased by 7%, excluding the value added tax, the annual sales of 192 billion 267 million krona, an increase of 6.3% over that of 180 billion 861 million Krona in 2015.

Karl-Johan Persson commented that, despite the expected revenue in 2016, it was mainly caused by the increase in write downs, but the group still had record sales.

In addition, the strong dollar increased procurement costs and weakened profitability. However, the Group recorded profit growth in the fourth quarter.

Karl-Johan Persson also said that 2016 was a year of group online and digital conversion. Both sales and profitability were well done, and COS, &Other Stories, Monki, Weekday and H&M Home online sales grew strongly during the period.

Karl-Johan Persson highly praised the group's online network construction and mode, and said that the online sales of several major markets in the group had taken up a significant share. At present, the online field is in an "exciting" continuing investment group. The group will continue to invest in multi-channel construction, provide customers with online and offline seamless shopping experience, and upgrade the supply chain with RFID and automatic storage technology.

Since sales growth in the past three years is obviously lower than the Inditex SA (ITX.MC) printing group, Hennes&Mauritz AB Hayne Maurice group has been criticized by the industry, which includes the slow development of e-commerce business.

The group's flagship brand H&M was later than Zara on the two largest markets in China and the United States.

However, for the H&M business, it also has its own advantages, while its slow development also means that its preparations are more adequate.

In the Chinese market, H&M is the only popular consumer market that explicitly rejected Tmall.com Tmall's brand.

As we all know, because China's regional economic development is extremely unbalanced, and the demographic dividend has promoted the development of supply chain logistics and warehousing business, the development of electricity providers in the Chinese market is faster than that of all countries in the world. The proportion of the total social consumer goods has also been the highest in the world. Therefore, the Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba has been born, and almost all well-known consumer goods brands have entered the Tmall.com Tmall of the group in China, including H&M's largest competitor Zara, and finally invested in the Tmall.com Tmall embrace.

H&M, the only well-known consumer brand that denial Tmall.com Tmall, may lose some traffic in the short term, but the traffic is not free, but is sold by Alibaba at a high price, and the price trend is serious in recent years.

Therefore, there is an analysis that the absence of Tmall.com is a short-term disadvantage for H&M, but in the long run it will be beneficial, because the above mode is very successful in European and American countries.

On the contrary, the retail brands settled in Tmall.com Tmall have already felt the increasing pressure of traffic price pressure and profit pressure. In view of the short-term investment needs of the self operated electricity supplier, the Tmall.com Tmall and JD.COM Jingdong are still the most practical platform for the retail industry in China with small retail brands.

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As of the 2016 fiscal year ended November 30, 2016, the Hennes&Mauritz AB Hayne Maurice Group recorded a SEK 106 billion 177 million gross profit, representing an increase of 2.9% over the 103 billion 167 million Krona in the 2015 fiscal year. The gross profit margin of the group dropped by 180 basis points to 55.2% during the period. The group's after tax profits in 2016 fiscal year fell by 11.8% to 24 billion 39 million Swedish krona, 2015 fiscal year was SEK, and the after tax earnings per share were SEK, which was lower than the Swedish Swedish kronor in 2015.

6.2% sales increased to 222 billion 865 million kronor, 2099.21 Swedish Krona in 2015, an increase of 7% in fixed exchange rates, and 192 billion 267 million kronor in 2015, excluding VAT, a 6.3% increase over the 180 billion 861 million Krona in 2015.

However, it is noteworthy that in the 2016 fiscal year Hennes&Mauritz AB Hayne Maurice group's stock increased by 28% to 31 billion 732 million kronor, equivalent to 16.5% annual sales, compared with 13.7% in the same period in 2015, which also accounted for 32.2% of the group's net assets, compared to 28.9% in 2015.

Hennes&Mauritz AB Hayne Maurice group explained that the increase in inventory was mainly due to strong expansion and less than expected sales in 2016. These inventories will also cause a 0.5% write down in the first quarter of the current fiscal year 2017.

In fiscal year 2017, the Hennes&Mauritz AB Hayne Maurice group plans to add 430 stores, including 70-80 H&M stores and 50 H&M Home stores.

At the same time stationed in Kazakhstan, Columbia, Iceland, Vietnam, Georgia six major markets, and in Turkey, Taiwan, Hongkong, Macao, Singapore and Malaysia online business.

Hennes&Mauritz AB Hayne Maurice group also said in its annual report that group sales in January of January 1st -29 recorded an increase of 11%, a sharp rebound compared with 6% in December.

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