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Latin America saves the fall of H & M in the first half. The Swedish fashion retail giant, which stagnated its global sales and reduced its double-digit profit, once again benefited from the five Latin American markets in which it is present.
After growing 41% over the first three months of the year, H & M once again increased its double-digit business figure in the first half (closed May 31st). ). Group sales amounted to SEK 3,114 million (US $ 349 million) an increase of 32.3% over the same period of the previous year.
Despite the good regional performance of the Swedish company, some Latin American markets penalized the group's progress. In fact, the region lost weight in H & M's global business turnover, with a 2.7% share up in May, while at the same time first quarter, this figure was 3.2%. [19659003]
However, this figure could increase in the next quarter, when the group plans to open new stores in Mexico and Peru. Yesterday, in the presentation of its half-year results, H & M announced that the expansion of its store network will focus on emerging markets while closing some stores in mature markets as the # 39; Europe.
The Swedish company launched a single store in Latin America during the second quarter of fiscal year with which it reached the sixty establishments in the region. H & M chose Colombia to expand its network of stores, added that the coffee country was the market for a better evolution for the group, with a turnover of 220 million crowns ($ 24.6 million) compared with 38 million crowns in the same period of the previous year, whereas it had only two outlets.
In Mexico, H & M sales increased from 42.5% in the first half of the year to 1,514 million kroner ($ 169.6 million). The Aztec country is the main market in Latin America for the company, by the turnover according to the number of stores, where it has 38 establishments.
H & M Increased Sales by 42.5% in Mexico and 22.7% in Chile in the First Half
The Swedish Giant Reached 40 Points of Sale in the Mexican Market last week when the blind of two new stores in the Paseo Interlomas and Parque Puebla shopping centers increased. In addition, H & M announced that it will start operating in Mexico with its online channel being the first market in Latin America to have a presence in e-commerce.
The second largest market by business for H & M in the region was again Chile. In the Andean country, the company increased its sales from 22.7% to 916 million crowns ($ 102.6 million). The group operates in the country with eight stores and is also preparing new openings for the rest of the year.
On the other hand, H & M still stumbled in Peru and Puerto Rico as it did in the first quarter. However, the decline in the first six months was lower. The group's sales in the Peruvian market amounted to 432 million kroner ($ 48.4 million), or 2.9% less than in the first half of 2017. The company operates in the Inca country with eight macrotiendas and prepares three other openings for the rest of the year.
Swedish titan plunged 48.3% of its sales in Puerto Rico between December and May
The sharpest decline in the second half of the year occurred in Puerto Rico, with a decline of 48.3% of the turnover, proceeds from the closure of the two establishments that H & M has on the island, which had to cancel their operations due to reforms in the shopping malls after the hurricane last year. The group's turnover in the Puerto Rican market was 32 million kronor ($ 3.5 million), compared with 62 million kroner ($ 6.9 million) in the first half of 2017. [19659003]
Latin America became a hub for H & M after arriving in the region in 2012, when the blind of its first store in Mexico rose. In the last three years, the company has landed in a new Latin American market during each fiscal year . In 2016, the group entered Puerto Rico, while in 2017 it did it in Colombia. By the end of the year, H & M will add Uruguay to its list of territories of the region with the establishment of an establishment in the commercial center from Montevideo.
On a worldwide scale, the Swedish titan has 4,801 stores at the end of the second half of the year. The H & M's business figure dropped only 0.2%, to stand at 98.165 million kroner ($ 11.002.6 million) between December and May. Profit, on the other hand, decreased by 28% to 6,010 million kronor ($ 673.6 million).
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