H & M Hennes & Mauritz AB Nine-month report

Nine-months (1 December 2013 — 31 August 2014)

  · The H&M Group’s sales including VAT increased in local currencies by 15
percent during the first nine months of the financial year. Converted into SEK,
sales excluding VAT amounted to SEK 108,775 m (92,067), an increase of 18
percent.
  ·  Profit after financial items amounted to SEK 18,096 m (15,189), an increase
of 19 percent. The Group’s profit after tax increased to SEK 13,754 m (11,544),
corresponding to SEK 8.31 (6.97) per share.

Third quarter (1 June 2014 — 31 August 2014)

  · Well-received collections resulted in strong sales and increased market
share. The H&M Group’s sales including VAT increased in local currencies by 16
percent during the third quarter. Converted into SEK, sales excluding VAT
amounted to SEK 38,805 m (32,040), an increase of 21 percent.
  · Gross profit amounted to SEK 22,627 m (18,828), an increase of 20 percent.
This corresponds to a gross margin of 58.3 percent (58.8).
  · Profit after financial items amounted to SEK 6,967 m (5,830), an increase of
20 percent. The Group’s profit after tax increased to SEK 5,296 m (4,431), an
increase of 20 percent, corresponding to SEK 3.20 (2.68) per share.
  · H&M’s online sales in Italy and Spain, which were launched in August, have
got off to a very good start.
  · Continued strong sales development for the other brands in the H&M Group:
COS, & Other Stories, Monki, Weekday, Cheap Monday and H&M Home.

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  · Sales in the period 1 September – 23 September 2014 increased by 7 percent
in local currencies compared to the same period last year. Sales in September
have so far been affected by the unusually warm weather in most markets.
  · H&M’s online store in China, which was launched already in September, has
got off to a very good start.
  · Strong expansion in 2014, with approximately 375 new stores net in total.
- The Philippines will become a new H&M market in October 2014.
  · H&M’s opening in India, planned for autumn 2014, has been postponed until
2015. In 2015 H&M will also open in South Africa, Peru, Taiwan and Macau.
  · H&M plans to open 8 – 10 new online markets in 2015.


Comments by Karl-Johan Persson, CEO

”We have continued to gain market share thanks to strong sales development for
all our brands. We see this as proof of well-received collections. Combined with
our expansion, this led to a sales increase of 21 percent in SEK in the quarter.
Also the good growth in profits continued with an increase in operating profit
of 20 percent - while we at the same time are in a very intensive investment
phase to build an even stronger H&M.

So far this year we have increased sales by 18 percent in SEK after nine months
and increased operating profit by 20 percent, i.e. by almost SEK 3 billion to
SEK 17.9 billion.

Within online shopping, we are in the midst of an exciting expansion. This year
we have opened four big new H&M online markets and next year we will open
another 8 to 10 new H&M online markets. Our online openings have taken place at
a rapid pace this year: France in March, Italy and Spain during August and
already, in September, we have launched online sales in China. We have had a
very good response from customers in all these countries. We see our online
store as a very important complement to our physical stores as the online store
makes it possible for us to increase our level of service and availability to
our customers.

Our store expansion plan for 2014 remains intact, with a planned net addition of
375 new stores. During the summer, we opened another flag ship store on Fifth
Avenue in New York. In October the Philippines will become a new H&M market
whereas India, which was supposed to open in the autumn, has been postponed
until 2015. In 2015, we also plan to open in South Africa, Peru, Taiwan and
Macau.

We are looking forward to a busy and exciting autumn. Besides our store and
online expansion, we are continuing to develop our customer offering including
the broadening of H&M Sport and our extended shoe range, which will be available
online as well as in selected stores during the autumn. In October, we will
launch our new collection “H&M Conscious Denim” which is made of more
sustainable materials.
Part of the collection includes recycled cotton from our global “Garment
Collecting” initiative, which is part of our work on closing the loop for
textiles as we want to reduce the environmental impact of clothing during its
life cycle.

Sustainability is important to both our customers and employees, and we are
therefore using our size and influence to drive progress on both environmental
and social issues. When our customers shop with us they need to feel sure that
they are buying from a company that takes responsibility. We are convinced that
our investments in sustainability are the right thing to do, even though it
entails costs in the short term. We always take a long-term view, and we see
sustainability as an investment in our common future.”


The information in this Interim Report is that which H & M Hennes & Mauritz AB
(publ) is required to disclose under Sweden’s Securities Market Act. It will be
released for publication at 8.00 (CET) on 25 September 2014. This Interim
Report, and other information about H&M, is available at www.hm.com
 (http://www.hm.com)

Contact persons

Nils Vinge, IR             +46-8-796 52 50
Karl-Johan Persson, CEO    +46-8-796 55 00 (switchboard)
Jyrki Tervonen, CFO        +46-8-796 55 00 (switchboard)

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46-8-796 55 00, Fax: +46-8-24 80 78, E-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220


H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on
NASDAQ OMX Stockholm. The company’s business concept is to offer fashion and
quality at the best price. In addition to H&M, the group includes the brands
COS, Monki, Weekday, Cheap Monday, & Other Stories as well as H&M Home. The H&M
Group has more than 3,300 stores in 54 markets including franchise markets. In
2013, sales including VAT were SEK 150,090 million and the number of employees
was more than 116,000. For further information, visit www.hm.com.