Sweden’s H&M Group said net sales increased by 11 percent to SEK 171,061 million during the first nine months of 2019, or 6 percent in local currencies, propelled by strong online sales in the third quarter.
For the nine-months ending August 3, the fast-fashion giant recorded a 9 percent profit after tax increase, lifting to SEK 9,231 million or SEK 5.58 per share.
In its recently ending third quarter, H&M group said net sales increased by 12 percent to SEK 62,572 million or 8 percent in local currencies. Online sales in the third quarter increased by 30 percent in SEK and by 25 percent in local currencies.
Third quarter profit after tax increased to SEK 3,859 million or SEK 2.33 per share, said the owner of H&M, & Other Stories, COS, and Monki brands.
”Well-received summer collections and increased market share show that we are on the right track with our transformation work to meet customers’ ever-increasing expectations,” said Karl-Johan Persson, CEO of H&M Group.
“The continued development of more full-price sales and reduced markdowns contributed to a 26 percent increase in operating profit in the third quarter, all while maintaining a high level of activity in our transformation work.”
By market, U.S. sales in local currencies rose by 19 percent, Poland by 20 percent, Italy by 15 percent, Russia by 12 percent and India by 29 percent.
Sales improved in South America, especially in Chile, where revenue grew by 32 percent. However, things were a bit tougher in some of the group’s “franchise markets due to challenging macro factors,” it said.
In Asia, H&M during the quarter launched on Indian e-commerce site Myntra, while sister brand & Other Stories opened on Tmall in China. H&M online was also launched in Indonesia, followed by Thailand in September.
Looking ahead, H&M said that the integration of its online and physical stores continues at full speed.
SEE ALSO : H&M and Zara are moving towards e-commerce
“Through our continued investments in tech and the supply chain we also plan later this year to offer our customers the chance to shop online from COS, Weekday, Monki, & Other Stories and ARKET in up to 70 or so new markets,” added Persson.