H&M continues its charge through the fashion world
with another strong earnings season.
Per the company's quarterly, and annual, earnings report released this morning, fourth quarter sales grew 17% to $3.57 billion in domestic currency (at current exchange rates), and profits jumped 14% to roughly $975 million.
Though the company did seem to feel a similar slump in the month of December, where sales decreased by 10% over the previous year, sales through Jan. 29 (one has to marvel at the efficiency that can include sales figures from as recently as two days ago in such a report!), sales have increased 16%. Results for the U.S. market, specifically, were not provided.
Full-year results for fiscal 2006/2007 were similarly positive, with sales climbing 15% to $12.3 billion, and profits resting solidly at the $3.0 billion mark, an increase of 21%.
The company plans to control roughly 190 stores for the next fiscal year, focusing its efforts in 2008 on building up markets in Egypt, Saudi Arabia, Bahrain, and Oman. Stores are expected to open in the Russian market in 2009.
The retailer is currently gearing up for the release of its "Fashion Against AIDS" collection, which bows tomorrow. The group of t-shirts, tank tops and hooded sweaters were designed in conjunction with Designers Against AIDS (DAA) and music industry celebrities including Rihanna, Timbaland, Rufus Wainwright (pictured in the spot above), Scissor Sisters, and Ziggy Marley, and Good Charlotte, among others. Twenty-five percent of sales from the line, priced at roughly $16-$40 (at current exchange) will go to various HIV/AIDS prevention projects at non-profits worldwide.
In 2006, H&M spent $17 million on measured media advertising in the U.S. market, and through November 2007, has spent $18 million, per Nielsen Monitor-Plus.