H&M stores fail to grow in fourth quarter

H&M stores fail to grow in fourth quarter

Swedish fashion group Hennes & Mauritz have failed to grow on a comparable basis during the last quarter of its financial year 2012 (September through November). The nine percent turnover growth was completely due to the opening of 304 new stores. The group now hopes its focus on mobile commerce will result in a more significant growth in the next few years.

Growth through store openings and mobile commerce

The group's' quarterly turnover went up to 37.93 billion Swedish crowns (4.3 billion euro), largely as a result of new stores opening in the Far East and North America. November's turnover growth was even slower at plus seven percent, but minus one percent in comparable units.

 

The company blames the “difficult market conditions”, but specialists point to the disappointing results of H&M's Maison Martin Margiela-collection, which might have been too eccentric for most H&M's customers. Contrary to earlier Limited Editions, like Versace's or Jimmy Choo's, the MMM-collection has not been sold out completely – especially in the US.

 

Last September, CEO Karl-Johan Persson pointed out that “The online market is increasingly growing, with particularly strong growth in mobile shopping via smartphones and tablets”. He announced that “as early as the beginning of next year we will also offer a completely mobile adapted H&M shop online in H&M's existing eight online markets". The Swedish chain hopes this new focus will enhance next year's financial results.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top