Sweden’s H&M Group announced on 28th January it logged annual sales of 198.96 billion Swedish kronor (US$21.26 billion), up 6.4 percent in reported terms compared to 2020.
For the year ended 30th November 2021, H&M said net profit stood at 11.01 billion Swedish kronor (US$ 1.18 billion), up from 1.24 billion Swedish kronor (US$ 132.5 million) a year earlier, while operating profit came in at 15.26 billion Swedish kronor (US$1.63 billion at current exchange), up 392 percent, compared to 3.1 billion Swedish kronor (US$ 331.2 million) in 2020.
“We ended the year strongly, with sales back at the same level as before the pandemic and with profitability better than it has been for several years. Now that we are back to a more normalised situation with a strong financial position and good profitability, we can fully focus on growth again,” said Helena Helmersson, CEO of H&M Group.
Coinciding with the positive financial announcement, the global fast-fashion giant said it plans to enter several new markets in 2022, opening its first stores in Ecuador, Kosovo and North Macedonia, as well as franchises in Costa Rica, Guatemala and Cambodia. Digitally, H&M said its online expansion will continue in 2022 with e-commerce sites making their debut in Belarus, Colombia, Kazakhstan, Peru and Ukraine.
The new market entries are in-line with company’s new strategic plan to effectively double its sales by 2030, while profitability is to exceed 10 percent over time, the company added.
H&M also released ambitious sustainability plans, saying it plans to halve its carbon footprint by 2030, by accelerating circularity, investing more in sustainable materials and helping suppliers reduce their environmental impact.
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To do so, H&M Group, which operates Cos, Monki, & Other Stories, Arket and Weekday, will double its investments this year, revealing capital expenditures of around 10 billion Swedish kronor (US$ 1.07 billion), for the year 2022.