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