H&M set out plans yesterday to double sales by 2030 as it drew a line under the pandemic.
The Swedish fashion giant hailed a ‘strong recovery’ from the coronavirus crisis driven by a healthy bounce back in the UK.
The company, which was founded in 1947 and is the world’s second biggest fashion retailer behind Zara-owner Inditex, said in an update that profits in the year to November 30 rose seven-fold to £1.1billion.
Boost: H&M hailed a ‘strong recovery’ from the coronavirus crisis driven by a healthy bounce back in the UK
It was boosted by its 4,800-strong store estate being open for much more of the year and a 24 per cent jump in online sales.
Overall sales rose 6 per cent to £15.8billion – meaning if the company hits its new target, sales would top £30billion by 2030.
In the last three months of the year, sales were up 8 per cent at £4.5billion.
They were boosted by its UK arm, where it has 289 stores, as sales jumped 36 per cent from a year earlier to £430.5m.
To reach its ambitious target, it is opening shops in six countries, Ecuador, Kosovo, North Macedonia, Costa Rica, Guatemala and Cambodia. It will add online stores in five countries. The fashion group also promised to halve its carbon footprint by the same time.
Shore Capital retail analyst Clive Black said the target was ‘exceptionally bold’ but added it is ‘there to be done’.
He said: ‘It is a big and demanding target and they are going to be constantly measured by this now. So they need to make sure this doesn’t become a millstone and you hope the target is something they feel very confident about hitting.’
Sales over the year were hit by supply chain disruption, but H&M said it offset any losses by selling less clothing at a discount.
Chief executive Helena Helmersson said Covid-related disruption would continue, but she was optimistic about the group going forward. The firm’s shares in Stockholm jumped 5 per cent on the news.
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