H&M plans to sell online in 32 countries by 2016
September 25, 2015 01:59 PM
Sweden-based apparel and accessories retailer Hennes & Mauritz AB, better known as H&M, is expanding its global online reach heading into 2016.
H&M, No. 85 in the Internet Retailer 2015 Europe 500, said in its third quarter earnings release that it plans to launch e-commerce sites in nine international markets in 2016: Croatia, Japan, Ireland Greece, Slovenia, Estonia, Latvia, Lithuania and Luxembourg. . An H&M spokesman declined to comment when asked for more details about the new sites.
“Our online roll-out to new countries is continuing according to plan,” CEO Karl-Johan Persson said in the earnings release. “Eight new H&M online markets have opened so far in 2015, all of which have had a very good reception.” Later this year, H&M will launch online stores in Switzerland and Russia. Once the launches are completed, H&M will have an online presence in 32 countries.
For the third quarter ended Aug. 31, H&M, which does not break out online sales, reports:
- Net revenue of 46.02 billion kroner ($5.47 billion), up 18.6% from 38.81 billion kroner ($4.62 billion) during the same time last year. Sales exclude value-added tax (VAT), which is collected in European countries and is the European equivalent of sales tax in the U.S.
- Net income of 6.94 billion kroner ($3.058 billion), down 0.4% from 6.97 billion kroner billion) during the same time last year.
For the first nine months of the year, H&M reports:
- Net revenue excluding VAT of 132.17 billion kroner ($15.72 billion), up 21.5% from 108.78 billion kroner ($12.94 billion) during the same time last year. Net revenue with VAT included came in at 153.44 billion kroner ($18.25 billion), up 20.9% from 126.96 billion kroner ($15.10 billion) during the same time last year.
- U.S. revenue including VAT of 18.36 billion kroner ($2.18 billion), up 53.3% from 11.98 billion kroner ($1.42 billion) during the same time last year. The U.S. accounted for 12.0% of the company’s total revenue with VAT included, compared with 9.4% during the same time last year.
- Net income of 20.09 billion kroner ($3.01 billion), up 11.0% from 18.10 billion kroner ($2.71 billion) during the same time last year.