H&M has released its full year reports for 2017, and although only having three stores in New Zealand, has seen a rise in profit for its Kiwi locations.
For the full year ending November 30 2017, the company as a whole reported a sales increase of $8.9 billion kronor, or $1.5 billion NZD.
Gross profit for all stores increased SEK$108,090 which corresponds to a gross margin of 54 percent.
The immense scale of the company can completely dwarf its operations in New Zealand. The company has a total of 4,739 stores globally, with just three of those found in New Zealand.
In the full financial year, H&M open another 479 stores and closed 91.
For its New Zealand locations, sales and value after tax increased by SEK$155 million, compared with SEK$55 million for the previous financial year.
The Christchurch opening.
Even for the last reported quarter of 2017, New Zealand sales and VAT saw an increase of SEK$26 million.
H&M financial reports for cash operating flow and gross profit groups Oceania and Asia together, making it difficult to know how much New Zealand contributes to the SEK$86,699 million increase of profit as reported by the company.
All around the company reported a profitable year, with bigger changes coming as the brand switches to a full circular sustainability model.
However profitable the year was, the first quarter results which were released earlier this month show low sales. The company had previous warned that markdowns to clear overstocked inventory would impact earnings at the start. Revenue fell 1.7 percent to USD$5.6 billion – after this reporting shares fell to a nine-year low.
H&M have also released plans to launch a new brand, Afound, to go along with the already existing eight brands, H&M, Cos, Weekday, Cheap Monday, Monki, H&M Home, Other Stories and Arket.
Even though only four months into 2018, H&M has still been in its fair share of hot water. Early this week the brand suffered a lawsuit after using a graffiti artist’s work without permission in one of its ads. In January the brand lost its up-coming partnership with singer, The Weeknd, after racial controversy was spiked due to an unfortunate jumper design.
H&M have also released results carried out for gender pay gaps for its UK arm, and although the pay gap came in 14.46 percent less than the national average, it still sits at 3.94 percent.
H&M stressed in the report that it was “fully dedicated to an equal pay structure for all our employees”.