Comments by Karl-Johan Persson, CEO
Accelerating our transformation in a rapidly changing industry
The fashion industry is changing fast. At the heart of the transformation is digitalization and it is driving the need to transform and re-think faster and faster. This is presenting many challenges but we believe we are well-placed to adjust to the new dynamics and take advantage of the opportunities in front of us.
Part of this opportunity is to do with the size of the market. While the H&M group is a big player, our market share is still relatively small. It is also a growing market. So, while the H&M group has come a long way, we are most excited by the distance we still have to go and our fitness for the opportunities ahead.
Our performance during 2017 was mixed, with progress in some areas but also difficulties in others. We delivered growth of 3 percent in 2017 which is clearly below our expectations. In the fourth quarter our sales overall decreased by 2 percent in local currencies. Our online sales and our newer brands performed well but the weakness was in H&M’s physical stores where the changes in customer behaviour are being felt most strongly and footfall has reduced with more sales online. In addition, some imbalances in certain aspects of the H&M brand’s assortment and composition also contributed to this weaker result.
But our performance does need to be seen in the wider context of the transformation that the industry is going through. Underneath the disappointing recent performance, we see reasons for optimism and good learnings but we need to accelerate the transformation even more.
Source : Hennes & Mauritz AB, Full-year report 2017, January 31 2018
Comments by Karl-Johan Persson, CEO
“2016 was an eventful year which included many positive things but also challenges for us as well as for the industry. During the year, we opened 427 new stores net worldwide and added three new markets, and we also rolled out our online store to 11 additional markets. This means that H&M is now present in 64 markets of which 35 offer e-commerce. We welcomed more than 13,000 new colleagues which means there are now more than 161,000 colleagues in the group.
Our sales increased by 7 percent in local currencies to SEK 223 billion - our highest annual turnover to date - although sales performance was lower than planned, which led to increased mark-downs. This, combined with the fact that the strong US dollar made our purchases more expensive, had a negative impact on our profit development for the full year. However, profits improved in the fourth quarter.
The year was characterised by the shift in the industry towards an ever growing online market and by digitalisation. We are very pleased that our online business developed very well for all our brands, both as regards sales and profitability. From an already high level we took further market share, which clearly proves that our investments in our online business have been successful. Our brands COS, & Other Stories, Monki, Weekday and H&M Home had apart from strong online sales growth also very good store sales."
Source : Hennes & Mauritz AB, Full-year report 2016, January 31 2017
30 - 1 De horizontale steunlijn is getrokken langs de onderkant van de body van de candle op 16 juni 2016 (239.50 SEK). De weerstandslijn loopt over de bovenkant van de wolk van eind juli. De mediaan loopt precies halverwege de steun en weerstandslijn en raakt de bovenkant van de wolk van november.
Maandag 23 januari j.l is de koers met een forse rode candle door de steunlijn gezakt (-3.1%). In de afgelopen week komt de koers er volledig onder te liggen.
Morgen worden de jaarcijfers over 2016 (december 2015 t/m november 2016) gepubliceerd.
Op 3 maart 2015 bereikte de koers intraday zijn hoogste waarde van 368.40 SEK. Bij de huidige koersniveaus zijn we terug bij de waarden in de jaren 2011 - 2013.