H&m Hennes & Mauritz Ab Class B · OMXSTO:HM_B
H&m Hennes & Mauritz Ab Class B — FY2018 Earnings Presentation
12 slides from H&m Hennes & Mauritz Ab Class B's earnings presentation, Jan 31, 2019
Slide 1: Press Conference 31 January 2019 - Full-Year Report 2018
H & M Hennes & Mauritz AB PRESS CONFERENCE 31 JANUARY 2019 FULL-YEAR REPORT 2018 • KARL-JOHAN PERSSON CEO • NILS VINGE INVESTOR RELATIONS 1
Slide 2: Fourth Quarter 2018 in Brief
FOURTH QUARTER 2018 IN BRIEF • Rapidly changing industry • Stronger collections generate increased full-price sales and lower markdowns in Q4 – sequential inventory improvement in Q4 vs Q3 • Positive signals from accelerated transformation • Ramped-up initiatives to secure transitions of platforms a
Slide 3: Sales and Sales per Market
SALES SEK m net sales + 5% 200,000 210,400 200,004 150,000 2017 100,000 2018 + 12% 50,000 50,407 56,414 0 Q4 Full year SALES PER MARKET TEN LARGEST MARKETS – FOURTH QUARTER Number of stores Germany 468 USA 578 UK 304 China 530 France 237 Sweden 175 Italy 179 Spain 172 Netherlands 144 Russia 139 SEK
Slide 4: Gross Profit and Gross Margin; Selling and Administrative Expenses
GROSS PROFIT AND GROSS MARGIN Gross profit SEK m 120,000 52.7% 54.0% 100,000 108,090 110,887 80,000 60,000 2017 40,000 54.2% 2018 55.4% 20,000 27,929 30,592 0 Q4 Full year SELLING AND ADMINISTRATIVE EXPENSES SEK m 100,000 + 9% 95,394 80,000 87,521 60,000 2017 40,000 2018 + 14% 20,000 26,290 23,108 0
Slide 5: Profit After Financial Items; Sales and Profits Fourth Quarter
PROFIT AFTER FINANCIAL ITEMS SEK m 25,000 - 25% 20,000 20,809 15,000 15,639 2017 10,000 2018 5,000 - 11% 4,873 4,352 0 Q4 Full year SALES AND PROFITS FOURTH QUARTER SEK m 2018 2017 Net sales 56,414 50,407 Gross profit 30,592 27,929 gross margin, % 54.2 55.4 Operating profit 4,302 4,821 operating mar
Slide 6: Sales and Profits Full Year; Key Data
SALES AND PROFITS FULL YEAR SEK m 2018 2017 Net sales 210,400 200,004 Gross profit 110,887 108,090 gross margin, % 52.7 54.0 Operating profit 15,493 20,569 operating margin, % 7.4 10.3 Net financial items 146 240 Profit after financial items 15,639 20,809 Tax -2,987 -4,625 Profit for the period 12,6
Slide 7: Strategic Focus Areas
STRATEGIC FOCUS AREAS STRATEGIC FOCUS AREAS • Strategic focus areas for the H&M group transformation work – best customer offering – fast, efficient and flexible product flow – tech foundation of stable and scalable infrastructure – new growth 7
Slide 8: Best Customer Offering - Assortment and Shopping Experience
BEST CUSTOMER OFFERING – ASSORTMENT • Improvement of H&M assortment – increased full-price sales and customer satisfaction – investments in customer offering – fashion and quality at the best price, in a sustainable way • Continued increase in share of sustainable materials in 2018 Morris & Co x H&M
Slide 9: Fast, Efficient and Flexible Product Flow; Tech Foundation
FAST, EFFICIENT AND FLEXIBLE PRODUCT FLOW • Continued investments in supply chain • Three new fulfilment centres in the fourth quarter – Kamen in Germany – Stryków and Boleslawiec in Poland • New fulfilment centres planned to open in Madrid and London around year-end 2019/2020 • AI for trend detecti
Slide 10: New Growth
NEW GROWTH • For 2019 approx 175 new stores net planned – approx 335 new stores to open, of which 240 H&M stores, with a focus on growth markets – Intensified store portfolio optimisation, including approx 160 store closures • Option to renegotiate almost 1, 000 store contracts in 2019 • Global roll
Slide 11: H&M Group Brands
H&M GROUP BRANDS • COS, Monki, Weekday, H&M Home, & Other Stories, ARKET and Afound – continued growth opportunities for all brands • Prioritising and focusing on core business – Cheap Monday to close down in 2019 – part of ongoing transformation work 11
Slide 12: H & M Hennes & Mauritz AB
& H & M Hennes & Mauritz AB HM COS WEEKDAY (369 _MONKL AMHOME Rote Series ARKET AFOUND
H & M Hennes & Mauritz — FY2018 Earnings Presentation on 6ix