press conference 24 september 2015 - h&m …...• rapid expansion of h&m’s online store,...
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H & M Hennes & Mauritz AB
PRESS CONFERENCE 24 SEPTEMBER 2015 NINE-MONTH REPORT
• KARL-JOHAN PERSSON CEO
• NILS VINGE INVESTOR RELATIONS
• ANN-SOFIE JOHANSSON CREATIVE ADVISOR
• Sales SEK 153 billion, including VAT
– 21% increase in SEK; +12% in local currencies
– well-received collections for all Group brands
– strong expansion continues in stores and online
• Substantial long-term investments within IT and online; and broadening of the product range
– H&M Beauty very well received
• Good cost control maintained
• Profit before tax SEK 20.1 billion (+11%)
NINE MONTHS 2015 IN BRIEF
FINANCIAL DATA
SALES
45,259
126,964
53,420
153,444
+ 18%
+ 21%
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Q3 Nine months
SEK m incl VAT
2014
2015
GROSS PROFIT AND GROSS MARGIN
2014
2015
22,62725,712
63,278
75,170
58.3% 55.9%
58.2%
56.9%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
Gross profit SEK m
Q3 Nine months
SELLING AND ADMINISTRATION EXPENSES
15,741
45,426
18,843
55,312
+ 20%
+ 22%
0
10,000
20,000
30,000
40,000
50,000
60,000
Q3 Nine months
SEK m
2014
2015
PROFIT AFTER FINANCIAL ITEMS
6,967
18,096
6,936
20,094
0%
+ 11%
0
5,000
10,000
15,000
20,000
25,000
Q3 Nine months
SEK m
2014
2015
SALES AND PROFITS THIRD QUARTER
SEK m 2015 2014
Net sales 46,024 38,805
Gross profit 25,712 22,627
gross margin, % 55.9 58.3
Operating profit 6,869 6,886
operating margin, % 14.9 17.7
Net financial items 67 81
Profit after financial items 6,936 6,967
Tax -1,630 -1,671
Profit for the period 5,306 5,296
Earnings per share, SEK 3.21 3.20
SALES AND PROFITS NINE MONTHS
SEK m 2015 2014
Net sales 132,167 108,775
Gross profit 75,170 63,278
gross margin, % 56.9 58.2
Operating profit 19,858 17,852
operating margin, % 15.0 16.4
Net financial items 236 244
Profit after financial items 20,094 18,096
Tax -4,722 -4,342
Profit for the period 15,372 13,754
Earnings per share, SEK 9.29 8.31
KEY DATA
SEK m 31 Aug 2015 31 Aug 2014
Stock-in-trade 25,205 17,940
Cash flow from current operations 17,813 18,007
Investments 7,893 6,348
Cash and cash equivalents and short-
term investments10,963 13,451
Return on shareholders' equity, % * 44.7 46.1
* rolling twelve months
STOCK-IN-TRADE
17,940
25,205
+ 40%
0
5,000
10,000
15,000
20,000
25,000
30,000
31 Aug
SEK m
2014
2015
EXPANSION
• Total of 3,675 stores in 59 markets (31 August)
• Approximately 400 new stores net planned for 2015
– China and the US largest expansion markets
• Five new H&M markets 2015
– very good reception in Taiwan, Peru and Macau
– India and South Africa new markets in October; H&M to open in New Delhi and Cape Town
• Three new H&M markets 2016
– New Zealand, Cyprus and Puerto Rico
STORE EXPANSION
• Continued expansion for H&M’s other brands
– COS, & Other Stories, Monki, Weekday and Cheap Monday
• More new stores planned for & Other Stories and COS in 2015 compared with 2014
• Four new markets for COS 2015
– Bahrain, opened via franchise in February
– Luxembourg, Hungary and Canada during autumn
• COS to open in the Czech Republic in spring 2016
OUR FASHION BRANDS
• Rapid expansion of H&M’s online store, hm.com
• Ten new online markets in 2015
– Portugal, Poland, the Czech Republic, Romania, Slovakia, Hungary, Bulgaria and Belgium opened during spring
– Switzerland and Russia to open in autumn
• H&M online in 23 markets in total (Nov 2015)
• Online in nine further H&M markets 2016
– Ireland, Japan, Greece, Croatia, Slovenia, Estonia, Latvia, Lithuania and Luxembourg
H&M ONLINE
• New broad concept for makeup, body care and hair care
• High quality at the best price in beautiful design
– wide selection of colours and trends
• Very well received in 700 stores in 28 markets and online
– gradual launch started in July 2015
• H&M Beauty available in a total of 900 stores in 42 markets and online by end of financial year
H&M BEAUTY
• H&M wants to speed up the development towards a more circular fashion industry
• H&M Garment Collecting offered in stores globally since 2013
– approximately 20,000 tonnes of used clothing collected for re-use and recycling
• Global Change Award
– established by H&M Conscious Foundation
– five winners to share EUR 1 million
– encourage and support innovation to close the loop for textiles
CLOSE THE LOOP
BALMAIN X H&M
• Parisian house of Balmain
– H&M’s guest designer 2015
• Olivier Rousteing, creative director
– mixing haute couture and streetwear attitude in unique style
– #HMBalmaination
• Collection for H&M with garments and accessories for women and men
– global launch on 5 November
– approx. 250 stores and online
BALMAIN X H&M
H & M Hennes & Mauritz AB