Ppt h&m
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Transcript of Ppt h&m
Financial performance
• 2015 was a very expansive year for H&M group, Sales
have been well developed. Including VAT, sales totalled
SEK 210 billion (increase of 19% in SEK)
The gross profit increased by 9% in the fourth
quarter which represents a gross margin of 57.5%
the market situation regarding external factors (raw
material prices, cost inflation, purchasing currencies
and transportation costs) has continued to be
negative during the purchasing period for the fourth
quarter compared to the same period the previous
year. All of this can be considered as a consequence
of the stronger US Dollar on purchasing costs. And
this tendency has continued in the first quarter of
2016
In local currencies sales including VAT increased by 9percent in the fourth quarter and by 11 percent during the2015 financial year. The substantial difference betweenthe sales increase in SEK and in local currencies is dueto the weakness of the Swedish krona against most salescurrencies in the group compared to the same period lastyear. Currency translation effects arise when sales inlocal currencies are translated into the company’sreporting currency, which is SEK. A positive currencytranslation effect arises when the Swedish kronaweakens and a negative currency translation effect arisesif the Swedish krona strengthens
International business
strategies
The future aim is to increase the number of stores by
10–15 percent per year with continued high
profitability
For full-year 2016 the group plans a net addition of
around 425 new stores, with most of the expansion
taking place in existing markets
Very soon H&M will also launch e-commerce in Japan and later in the year also in Greece, Canada and South Korea
A total of 11 H&M online markets will thus be added in 2016 which means that H&M will offer e-commerce in 34 markets by the end of the year
H&M wants to face with
new business in “difficult”
countries so to approach
to countries where
there is a high rate of
Muslims
SOCIAL POBLEMS
SOCIAL POBLEMSH&M has also the goal to reduce the world pollution
deriving from the production and the use of chemical
products and working with authorities to avoid this
problem
“Following a lifecycle approach, we work to limit the use
and discharge of hazardous chemicals as well as working
on overall environmental practice upstream in our value
chain”
The End