Sweden-based fashion retail mammoth H&M (Hennes & Mauritz) has announced its fourth quarter and full year 2018 results.
The brand’s full year revenue increased by 5 percent. Its net sales improved by 3 percent. However, profit dropped by 21.8 percent, to 12,652 million SEK.
The profit margin of the brand also declined to 6 percent compared to 8.1 percent in 2017.
H&M’s sales for the full year stood at 210,400 million SEK, up from 200,004 million SEK last year.
For the fourth quarter, H&M’s net sales increased by 12 percent to 56,414 million SEK. Profit reached 4,352 million SEK compared to 4,873 million SEK last year.
Profit after tax amounted to 3,543 million SEK for the fourth quarter against 3,993 million SEK in the fourth quarter last year.
“Against a backdrop of rapid changes in the fashion industry, in 2018 we accelerated our transformation to future proof our business, ending a challenging year for the H&M Group and the sector with strong signals that we are on track,” said H&M CEO Karl-Johan Persson.
While this performance is still some way off the targets that H&M had set in the beginning of 2018, positive signals confirm they’re making progress across strategic focus areas.
Notably, H&M operates its nine brands namely H&M, Cos, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home, Arket and Afound, to offer an extensive range of fashion attires through its 4,900+ stores.