H&M has brushed off a “challenging environment” after seeing an increase in annual earning, in the year to 30 November the fashion retail giant reported a 6% rise in operating profits of £1.5 billion.
This is largely due to a 38% increase of their final quarter due to strong Black Friday sales.
H&M saw sales local currencies increased by 2% in the year through to the fourth quarter, but the fashion retailer cautioned they are expecting net sales with the currencies to fall 2% year-on-year by January.
H&M said the decline “should be seen in the light of strong sales during the Black Friday week at the end of November, which led to subdued demand in a number of markets in December”.
H&M said, “The company is closely monitoring developments in global trade and trade restrictions.
“With good flexibility in the supply chain and through the pricing of the customer offering, there are opportunities to adapt the business to changed conditions.”
Chief executive Daniel Erver said, “Through a strengthened customer offering, good cost control and improved inventory productivity, we continue to take important steps towards all our long-term targets in a challenging environment.”
