×
68 622
Fashion Jobs
TIFFANY & CO
Finance Analyst- Latam
Permanent · New York
OLD NAVY
Unassigned General Manager - Dallas West
Permanent · Denton
ASCENA
Loft Outlet - Five Oaks Part-Time Sales/Stock
Permanent · Sevierville
LULULEMON
Assistant Manager, Operations | San Marcos Premium Outlet
Permanent · San Marcos
LULULEMON
Assistant Manager, Operations | Scottsdale Quarter
Permanent · Scottsdale
LULULEMON
Assistant Manager, Operations | Broughton st (Savannah, ga)
Permanent · Savannah
GAP
General Manager - Topanga Plaza
Permanent · Los Angeles
ADIDAS
Senior Finance Analyst
Permanent · Portland
ADIDAS
Key Account Manager - Macy's
Permanent · New York
MACY'S
Asset Protection Detective, Bay Fair - Full Time
Permanent · San Leandro
MACY'S
Asset Protection Detective, North Point - Full Time
Permanent · Alpharetta
MACY'S
Asset Protection Detective, Santa Rosa Plaza - Full Time
Permanent · Santa Rosa
MACY'S
Asset Protection Detective, West Covina - Full Time
Permanent · West Covina
MACY'S
Asset Protection Captain, Sunrise - Full Time
Permanent · Citrus Heights
MACY'S
Asset Protection Detective, Center City - Full Time
Permanent · Philadelphia
MACY'S
Asset Protection Detective, Kaahumanu Center - Full Time
Permanent · Kahului
MACY'S
Asset Protection Detective, Lakeside - Full Time
Permanent · Metairie
MACY'S
Manager, Asset Protection Multi-Store
Permanent · Maplewood
MACY'S
Asset Protection Security Guard, Metro Center - Full Time
Permanent · Washington
MACY'S
Senior Manager Omni Operations
Permanent · Chicago
MACY'S
Manager, Merchandise Execution
Permanent · Santa Clara
MACY'S
Manager, Merchandise Execution
Permanent · Santa Clara
By
Reuters
Published
Jan 25, 2007
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

H&M profit beats forecasts, may pay out more cash

By
Reuters
Published
Jan 25, 2007

By Simon Johnson

STOCKHOLM (Reuters) - Fashion retailer Hennes & Mauritz reported better than expected fourth-quarter pretax profits and December sales on Thursday, raised its annual dividend and said it could return more cash to shareholders.

H&M, celebrating 60 years of operation this year, reported a pretax profit of 5.44 billion Swedish crowns ($780.8 million) in the fourth quarter, ahead of the average of analysts' forecasts of 4.94 billion crowns given in a Reuters poll and the 4.3 billion made in the same quarter last year.

It proposed a dividend of 11.5 crowns per share, up from 9.5 crowns, and added that the board "may propose that the surplus liquidity can also be distributed."

Shares in H&M were up 5.4 percent at 363 crowns at 0820 GMT.

"It looks like a strong report in all aspects -- good margins and it is good to see that they are looking at a potential extra payout," said one analyst who declined to be named.

A second analyst said the launch of H&M's Home textile concept through Internet and catalog sales planned for the autumn was "a good way to boost sales." "It is absolutely positive that they have found a new way to grow."

H&M Home will sell items such as bedding, curtains, towels and cushions.

The fourth-quarter gross margin widened to 61.8 percent from 60 percent in the same period of 2005 and ahead of the 60.9 percent forecast given by analysts in the poll.

December sales, the first month of its financial year, were up 16 percent on a year ago, which compared with analysts' expectations of a rise of 13 percent. Like-for-like sales were up 5 percent in December, compared with a forecast of 3 percent.

EXPANSION

"The garment mixes in the autumn collections were good and the collections have been well received. This continued into December," H&M said in a statement.

It said price reductions in general were at a lower level in the fourth quarter than in the same period last year, while it also had lower marketing costs and benefited from more efficient buying.

Stock-in-trade increased by 6 percent over the same period last year to 7.22 billion crowns -- 10.6 percent of sales or 20.3 percent of total assets.

H&M, which in December extended a deal with pop star Madonna after tie-ups with a number of famous designers, said it planned 170 new stores in 2006/2007.

H&M also said it would open its first high-end concept store, called Collection of Style (COS), in March, on Regent Street in London. Ten stores are planned for the year.

The COS stores will carry a range of clothes for men and women that are more expensive than the mainstream H&M shops. Stores are also planned for Germany, the Netherlands and Belgium.

Sales for the full year 2005/2006 were up 12 percent at 68.4 billion crowns from 61.262 billion.

The firm had 1,345 stores at the end of November 2006 against 1,193 stores a year earlier.

(Additional reporting by Rebecka Kihlstrom)

© Thomson Reuters 2022 All rights reserved.