STOCKHOLM, Sweden, March 22, 2002 (PRIMEZONE) -- H & M Hennes & Mauritz:
-- Group turnover for the period amounted to SEK 11,246 m (9,634),
an increase of 17 per cent compared to last year. With comparable
exchange rates, the increase was 11 per cent.
-- Gross profit increased by 35 per cent. Gross margin was 52.9
per cent (45.8).
-- Profit after financial items amounted to SEK 1,180 m (571), an
increase of 107 per cent.
-- Improved result in all countries compared to the previous year.
-- Profit per share after estimated tax was SEK -.93 (-.45).
-- Sales development for the month of February was 16 per cent with
comparable exchange rates.
Turnover
Total turnover including VAT for the H&M Group increased by 17 per cent during the first quarter (11 per cent with comparable exchange rates) and amounted to SEK 11,245.8 m (9,633.6).
Turnover increase in the month of February was 16 per cent excluding exchange rate fluctuations.
H&M opened seven stores during the first quarter, of which two in the USA, two in Germany, two in the UK and one in France. Two stores were closed, bringing the total number of stores to 776. During the same period last year six stores were opened and one was closed.
Sales outside Sweden accounted for 89 per cent (87).
Profits
Gross profit amounted to SEK 5,071.9 m (3,759.0), which corresponds to a gross margin of 52.9 per cent (45.8).
After deduction of administrative and selling expenses, operating profit for the first quarter amounted to SEK 1,101.4 m (500.9). This corresponds to an operating margin of 11.5 per cent (6.1).
Operating profit for the period has been charged with depreciation according to plan amounting to SEK 271.0 m (211.4) and start-up costs, the part of investments in new stores that is charged directly to the income statement, of SEK 25.0 m (40.0). After depreciation but before start-up costs, operating margin amounted to 11.8 per cent (6.6).
Group financial net interest income was SEK 78.9 m (69.8).
Profit after financial items was SEK 1,180.3 m (570.7), an increase of 107 per cent.
Profit after estimated tax was SEK 767.2 m (371.0), corresponding to earnings per share of SEK 0.93 (0.45).
Return on shareholders equity (revolving 12 months) was 29.8 per cent (21.5) and return on capital employed (revolving 12 months) was 44.3 per cent (33.4).
Comments on the Results
Planned lower stock-in-trade compared with last year has resulted in considerably lower price reductions and thereby a substantially increased gross margin.
Operating result has improved in all countries compared with the previous year.
The result before tax for the first quarter has been positively affected by currency translations effects as a result of the weakened SEK of slightly more than SEK 50 m compared with last year.
Strong Financial Position
Group balance sheet total increased by 26 per cent and was SEK 20,827.3 m (16,493.4).
During the period, the Group generated a positive cash flow of SEK 491.7 m (140.0).
The financial assets amounted to SEK 8,759.8 m (5,663.0).
Stock-in-trade was SEK 4,587.4 m (4,855.4), a decrease of six per cent.
SEK 340.3 m (291.2) were invested in the operation through acquisitions of fixed assets.
Group solidity was 76 per cent (76) and the share of risk-bearing capital was 78 per cent (80).
Net worth apportioned on the outstanding 827,536,000 shares on February 28, 2001, corresponded to SEK 19.09 (15.10) per share.
Continued Expansion
Expansion continues and during the second quarter 26 stores are planned to open. Of these openings, 7 will be in the Germany, six in France, two each in the UK, the Netherlands, Belgium, Austria and the USA. In Norway, Denmark and Finland one store per country will be opened.
In the corresponding period last year, 43 new stores were opened.
During 2002, approximately 90 new stores will be opened.
The interim report has not been audited.
The Half-Year results will be published on June 19, 2002 The Nine Months results will be published on September 19, 2002
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