STOCKHOLM, Sweden, June 19, 2002 (PRIMEZONE) -- H & M Hennes & Mauritz:
- Turnover for the H&M Group amounted to SEK 24,706 M (21,391), an
increase of 15 per cent. In comparable currency rates, the increase
was 12 per cent.
- Turnover for the second quarter amounted to SEK 13,460 M (11,758),
an increase of 14 per cent compared with the previous year, in
comparable currency rates the increase was 13 per cent.
- Profit after financial items for the half-year was SEK 3,318 M
(2,132), an increase of 56 per cent.
- Profit after financial items for the second quarter was SEK 2,138 M
(1,561), an increase of 37 per cent.
- Strong result improvement in the USA and continued success in
Germany.
Turnover
Turnover including VAT for the H&M Group increased by 15 per cent in the first six months (with comparable currency rates, 12 per cent) and amounted to SEK 24,705.5 M (21,391.3).
Turnover for the second quarter increased by 14 per cent (with comparable currency rates, 13 per cent).
Turnover increase for the month of May was 11 per cent with comparable currency rates.
During the first six months, the Group opened 34 stores; nine in Germany, seven in France, four in the USA, four in the UK, two each in Belgium, the Netherlands and Austria and one each in Denmark, Finland, Luxembourg and Norway. Four stores have been closed in Germany. The total number of stores in the Group thus amounts to 801 (730).
Profits
Gross operating profit for the first six months amounted to SEK 11,351.6 M (9,091,4). The result achieved corresponds to 53.9 per cent (49.8) of sales.
Gross margin for the second quarter amounted to 54.6 per cent (53.1).
After deduction for selling and administrative expenses, operating profit was SEK 3,159.4 M (2,003.8). The result corresponds to an operating margin of 15.0 per cent (11.0).
Operating profit for the period has been charged with depreciation according to plan amounting to SEK 531.9 M (438.4) and start-up costs, i.e. the part of the investment in new premises which is treated as a cost item, of SEK 80.0 M (99.1). After depreciation but before start-up costs, operating margin reached 15.4 per cent (11.5).
Operating margin for the second quarter amounted to 17.9 per cent (15.0).
Group financial net interest income for the first six months was SEK 159.0 M (127.7).
Profit after financial items reached SEK 3,318.4 M (2,131.5), an increase of 56 per cent.
Profit after financial items for the second quarter amounted SEK 2,138.1 M (1,560.8), an increase of 37 per cent.
Profit for the Group after comprehensive tax allocation (35 per cent) for the first six months was SEK 2,157.0 M (1,385.5), corresponding to earnings per share of SEK 2.61 (1.67).
Profit for the second quarter after comprehensive tax allocation was SEK 1,389.8 M (1,014.5), corresponding to earnings per share of SEK 1.68 (1.23).
Return on shareholders' equity (revolving 12 months) was 31.2 per cent (24.3) and return on capital employed (revolving 12 months) was 48.1 per cent (37.7).
Comments on the Results for the second quarter
Gross margin increased during the second quarter by 1.5 percentage unit compared with the same period last year. The improvement is principally due to a lower level of price reductions. The increased part of purchases during the season has to a large extent contributed to the lower price reductions.
The H&M Group has in the second quarter improved the result and the operating margin in all markets compared with the same period last year.
The focusing on increased efficiency in the American operation has had effect during the quarter with lower operating expenses and a better adjusted stock-in-trade and consequently a strong result improvement in the U.S.A.
During the period, H&M's German operation has strengthened its position in an otherwise very weak retail market. Sales in Germany increased by 10 per cent during the quarter.
The result for the quarter has been positively affected by currency translation effects of approximately SEK 60 M compared with last year. The currency translation effects arise when the results of foreign subsidiaries are translated into SEK in order to be consolidated into the H&M Group accounts.
Financial position
Group balance sheet total increased by 30 per cent and corresponded to SEK 20,875.9 M (16,060.7).
During the period, the Group generated a positive cash flow of SEK 1,203.0 M (85.4).
Financial assets amounted to SEK 9,418.5 M (5,735.8) an increase of 64 per cent.
Stock-in-trade was SEK 3,982.5 M (3,943.3), an increase of one per cent.
Investments in fixed assets amounted to SEK 593.5 M (776.1).
The equity/assets ratio corresponded to 76 per cent (78) and the share of risk-bearing capital was 80 per cent (82).
Net worth apportioned on the outstanding 827,536,000 shares on 31 May corresponded to SEK 19.21 (15.15).
Expansion
Expansion continues according to plan. During the rest of the fiscal year, approximately 55 stores will be opened mainly in the U.S.A, Germany, the U.K., Spain and France.
The Parent Company
The parent company, which is not the same as the Swedish operation, reached a turnover (including inter-company sales) during the period of SEK 3,048.6 M (2,691.9) and estimated taxable profit of SEK 2,113.5 M (726.3), of which SEK 1,934.2 M (792.9) was dividend from subsidiaries.
Accounting principles
This interim report has been prepared in accordance with the recommendation issued by the Swedish Financial Accounting Standard Council regarding interim reporting (RR20). The new recommendations from the Swedish Financial Accounting Standard Council, which have come into force in 2002, have been observed but have not affected the report. Otherwise, the same accounting principles have been used as in the latest annual report.
This half-year report has not been audited.
A report for the first nine months of the financial year will be published on 19 September 2002. A report for the fiscal year 2001/02 will be published on 29 January 2003.
Stockholm 19 June 2002
The Board of Directors
Contact persons: Rolf Eriksen, CEO +46 8 796 52 33 Carl-Henric Enhorning, IR +46 8 796 54 10 Leif Persson, CFO +46 8 796 13 00 Switchboard +46 8 796 55 00
Information about H&M and press photographs are available at www.hm.com
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
www.waymaker.net/bitonline/2002/06/19/20020618BIT01030/wkr0001.doc Full Report www.waymaker.net/bitonline/2002/06/19/20020618BIT01030/wkr0002.pdf Full Report