1. Are there any surprises in the report?
H&M’s new logistics system to speed up deliveries cost money during the quarter. It affected the result, which was weaker than in the previous year. The process as it long hath been spoken, were given an extra boost, and thereby notifies the fashion chain that they have taken another step forward in the work that continues when customers are buying increasingly online.
Three new logistics centres with a total area of 230.000 kvadratmete opened during the quarter. Furthermore, it is clear that the company keeps the dividend at the same level as before the 9:75 sek per share.
2. How is it with H&M’s large inventory of unsold goods?
The long period of weak sales has been H&M’s stock to grow. During the fall continued the trend. The inventory was expanded by a further 10% in local currencies and is now worth close to 38 billion. At the same time, according to the company that the goods that are left is a better ”mix” than in the past. Therefore, it is estimated that the sales will decrease.
3. How is it possible for H&M’s sales?
the Sales figures were known before, but what can be said is that H&M is slowly but surely seems to have been running sales again, while there is still a long way to go to the target of 10-15 per cent on the year.
During the fourth quarter, sales increased by 6 percent in local currencies compared with last year, although very weak sales. What is continuing to go well is online sales, which increased by 24% during the quarter. E-commerce now accounts for 14.5 per cent of the klädkedjans total sales. At the same time, notifies the fashion chain to 175 new physical stores are planned in 2019, where almost half should be in the newer brands.
