H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — H1 2019 Earnings Presentation
14 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jun 27, 2019
Slide 1: Press conference 27 June 2019 – Six-month report 2019
H & M Hennes & Mauritz AB Press conference 27 June 2019 Six-month report 2019 Karl-Johan Persson CEO Nils Vinge Investor Relations 1
Slide 2: More full-price sales; Transformation further intensified
More full-price sales • Net sales +6% in local currencies in Q2 • Continued increase in full-price sales — lower markdowns — increased market share • Online sales +20% in local currencies in Q2 • Very good start to the summer collections — net sales in June estimated to grow +12% in local currencies
Slide 3: Sales
Sales Net sales SEK m 125,000 + 11% 100,000 108,489 98,165 75,000 + 11% 2018 50,000 57,474 51,984 2019 25,000 0 Q2 Six months 3
Slide 4: Sales per market; Gross profit and gross margin
Sales per market Net sales in ten largest markets, second quarter 2019 Number of stores Germany 462 USA 575 UK 302 China 533 France 234 Sweden 178 Italy 180 Spain 167 Russia 141 Netherlands 137 SEK m 0 2,000 4,000 6,000 8,000 10,000 Gross profit and gross margin SEK m 60,000 52.9% 53.2% 57,351 50,00
Slide 5: Selling and administrative expenses; Profit after financial items
Selling and administrative expenses SEK m 60,000 + 12% 50,000 50,411 40,000 44,989 30,000 + 12% 2018 25,890 2019 20,000 23,157 10,000 0 Q2 Six months Profit after financial items SEK m 10,000 8,000 - 4% - 1% 7,275 6,977 6,000 6,012 5,934 2018 4,000 2019 2,000 0 Q2 Six months 5
Slide 6: Sales and profits; Key data
Sales and profits Second quarter SEK m 2019 2018 Net sales 57,474 51,984 Gross profit 31,825 29,164 gross margin, % 55.4 56.1 Operating profit 5,935 6,007 operating margin, % 10.3 11.6 Net financial items -1 5 Profit after financial items 5,934 6,012 Tax -1,365 -1,374 Profit for the period 4,569 4,6
Slide 7: Strategic focus areas; Best customer offering
Strategic focus areas • Best customer offering • Fast, efficient and flexible product flow • Tech foundation of stable and scalable infrastructure • Adding new growth Best customer offering • Improved assortment — increased full-price sales — more recurring customers — higher customer satisfaction •
Slide 8: Improved shopping experience; Online store upgrade
Improved shopping experience • Improving in-store and online shopping experience • Enhanced H&M store experience — ongoing tests get positive response — more happy customers and increased sales Online store upgrade • H&M’s mobile app and hm.com — improved navigation and product presentation — more p
Slide 9: Increased transparency; Integrating physical stores and online
Increased transparency • H&M drives increased transparency in the value chain • First among the world’s large fashion companies to show information about factory and material on individual garments — online and in-store Integrating physical stores and online • Seamless shopping experience — click &
Slide 10: Loyalty programme; Product flow
Loyalty programme for H&M’s customers • H&M’s customer loyalty programme further developed — more relevant offers • 43 million members — 19 markets • Continued expansion Product flow • Supply-chain investments — fast, efficient and flexible product flow • New logistics centres • Advanced analytics a
Slide 11: AI; Tech foundation
AI • Advanced analytics and AI • Increasingly important support — trend detection — quantification and allocation — pricing — personalisation Tech foundation • Stable and scalable infrastructure — new online platform globally — new logistics systems • Further improvements for customers • Faster deve
Slide 12: Adding new growth
Adding new growth • Global online roll-out continues — H&M online in Mexico in April 2019 — H&M online in Thailand, Indonesia and Egypt via franchise in 2019 • Collaboration with external platforms in 2019 — H&M to launch on Myntra in India — & Other Stories to launch on Tmall in China Adding new gr
Slide 13: H&M Group
H&M Group H&M Group H&M Group 13
Slide 14: H & M Hennes & Mauritz AB
H&M Group H & MHennes & Mauritz AB AM COS WEEKDAY -MONKL #MHOME ote Sens ARKET AFOUND 14
H & M Hennes & Mauritz — H1 2019 Earnings Presentation on 6ix