H&M (STO: HM-B) FY18 Results: Logistics Upgrade Proves a Drag on Profits

Executive Summary

• H&M reported FY18 net sales were up 3% in local currencies, with an improvement to 6% in 4Q18.
• EPS was down 21.9% year over year in fiscal 2018, slightly missing the consensus of SEK7.8 recorded by StreetAccount, due to higher selling and administrative costs.
• In FY19, H&M plans to open 335 new stores, of which around 240 will be under the H&M banner. It plans to close 160 stores.