H&M Channel Upgrade: Online And Offline Stores Are Almost Open.

Recently, although H&M has been expanding radically in recent years, sales figures are not pretty. The report shows that the gross profit margin of H&M in the first half of the year was 54.9%, down from 57.4% in the same period last year, and the cost of management and marketing rose all the way in the past four years. However, H&M CEO recently released heavy news: online and offline stores are almost the same, the next step is to integrate two sales channels to complement each other.

Financial reports show that H&M The gross profit margin in the first half was 54.9%, lower than 57.4% in the same period last year, and the after tax profit was 7 billion 902 million kronor, which totaled 4.77 kronor per share, down 21.5% from the same period last year. During this period, tax related turnover increased by 5%, which was 104 billion 970 million Swedish kronor, rising by 7% in local currency, but significantly lower than the two digit growth rate in the same period last year.

The gross profit in the second quarter was 26 billion 980 million kronor, with a gross margin of 57.6%, down from 59.4% in the same period last year. The group's net profit of SEK 5 billion 375 million was 3.24 kronor per share, down 16.9% from the same period last year.

Looking at the H&M earnings report, the weather, exchange rate and promotion are all accidental factors. Long term investment is a pain spot throughout the year. CEO always needs to explain where the money has gone. In the past three or four years, H&M Investment figures Rising. Financial reports show that nearly four years of marketing and management Cost cost The increase is 9.5%, 7.5%, 17.8% and 20.1% respectively, mainly for offline stores, IT and logistics, and online expansion.

H&MCEO attributed the poor performance to the cold weather in many markets in March and April, the disadvantageous dollar, the new discount activities and the impact of long-term investments.

At present, H&M has more than 4000 stores in the world, covering 62 markets. Over the past 5 years, the number of H&M stores has maintained a growth rate of 10-15%, and the total number of stores in the 2011-2015 years has been 2472, 2776, 3132, 3511 and 3924 respectively. About 425 new projects are planned this year, with emphasis placed on China and the United States. In addition to continuing to set up the existing market, H&M has also declined to expand new countries, such as Puerto Rico and Cyprus. 4-5 markets will be added next year, and Columbia has been identified.