H&M’s Profits Decrease Despite An Otherwise Stellar Year

by Julia Rubin | 5:16 pm, January 26th, 2012

H&M had both a good year and a bad year. Let’s discuss.

The Good:
• Sales went up 8%
• People freaked out about Versace
• 266 stores were opened, creating 7,000 jobs
• 5 new markets were added to its portfolio

The Bad:
• Profits decreased by 15%

See, lots of good stuff! But when it comes to retail, it’s all about Benjamins. H&M blames its losses on increased purchasing costs that did not translate to increased retail pricing and unseasonably warm weather that forced the company to markdown merchandise.

[WWD]