By Xuefei Chen Axelsson

STOCKHOLM, Jan. 31(Greenpost)–Swedish garments’ giant H&M has seen a strong expansion year in 2015- 2016 financial year with a total net addition of 427 new stores and 11 new H&M online markets， according to its yearly report issued today.

The H&M group’s sales including VAT increased by 7 percent in local currencies during the financial year. Converted into SEK, sales including VAT increased by 6 percent to SEK 222,865 m (209,921). Sales excluding VAT amounted to SEK 192,267 m (180,861).

Gross profit increased to SEK 106,177 m (103,167). This corresponds to a gross margin of 55.2 percent (57.0).

Profit after financial items amounted to SEK 24,039 m (27,242). The group’s profit after tax amounted to SEK 18,636 m (20,898), corresponding to SEK 11.26 (12.63) per share. Profits during the year were negatively affected by increased mark-downs but also by higher purchasing costs from the strengthened US dollar.

But it saw very strong expansion during the year with a total net addition of 427 (413) new stores and 11 new H&M online markets. At the end of the financial year H&M had 35 online markets and the number of stores amounted to 4,351 in 64 markets.

13,000 new jobs were created in the H&M group in 2016. The number of employees amounted to more than 161,000 (148,000) at the end of the financial year.

Continued strong online development for all brands both as regards sales and profitability.