The chain expects a net reduction of 145 stores in 2022

Madrid, 31 (European Press)

Swedish textile chain Hennes & Mauritz (H&M) had a net profit of 217 million kroner between December 2021 and February 2022, the company’s first fiscal quarter, compared to a loss of 1070 million kroner (103 million euros) representing in the same period. period of the previous year, the multinational company reported.

The Scandinavian company’s net sales were 49,166 million kroner (4,755 million euros), up 22.3% from the previous year’s income, including a 38% increase in sales in physical stores, while online sales were just below the high level. in the last year .

H&M sales in Asia/Oceania totaled 7,034 million kroner (680 million euros) in the first quarter, down 3.2%, while in Europe and Africa it reached 31,204 million kroner (3018 million euros), an increase of 25.9%. In America, H&M sales grew by 36.2% to 10,928 million crowns (1,057 million euros).

Similarly, the Swedish chain noted that between March 1 and 28, the company’s sales increased by 6% in local currency and 11% when excluding the influence of Russia, Ukraine and Belarus, as H&M temporarily halted operations, affecting 185 stores and online businesses.

On the other hand, the chain stated that it continued to expand into more markets during the quarter, and opened its first H&M store in Cambodia through a franchise in March. Other new markets for H&M in 2022 will be Ecuador, Kosovo and North Macedonia, as well as Costa Rica and Guatemala through the concession. In 2023 H&M plans to open its first store in Albania.

By 2022, H&M’s plan is to open about 95 new stores and close about 240 stores, for a net decline of about 145 stores. Most openings will be in developing markets, while closings will primarily be in established markets.

At the end of its first fiscal quarter, the chain had a total of 4,721 stores, down 228 establishments in one year.