- Prachi Singh |
For the fourth quarter of 2017, H&M sales including VAT amounted to 58.545 million Swedish krona (6,928 million dollars) compared to 61,098 million Swedish krona (7,241 million dollars). Sales excluding VAT amounted to 50,390 million Swedish krona (5,975 million dollars), a decrease of 4 percent compared to the corresponding quarter last year. In local currencies, sales decreased by 2 percent. The company said that in order to respond even quicker to customers’ fast-changing behaviour, the H&M would close more stores.
The H&M group added that though it continued to grow during the year, the growth was dampened by the fact that the sales development in the fourth quarter was significantly below the company’s own expectations. The quarter was weak for the H&M brand’s physical stores, which were negatively affected by a continued challenging market situation with reduced footfall to stores due to the ongoing shift in the industry. In order to correct this, H&M said, a number of actions have been taken including continued integration of the physical and digital stores, and intensifying the optimisation of the H&M brand’s store portfolio – leading to more store closures and fewer openings.
The H&M group’s sales including VAT increased by 4 percent to 231,744 million Swedish krona (27,480 million dollars) in the financial year of 2017. Sales excluding VAT amounted to 199,987 million Swedish krona (23,714 million dollars). In local currencies, sales increased by 3 percent.