The Swedish giant, present in Romania since March 2011, ended 2013 with net income of 23.7 million lei (EUR5.4 million), up around 53% on the year. H&M hired another 139 people amid the opening of new stores in 2013, getting to a total headcount of 526 people.
Internationally, the group has over 116,000 employees and net income of EUR1.9 billion. The group’s profit is reported for the 2013 financial year, which starts in December 2012 and end in November 30, 2013. Domestically, the financial figures are reported for calendar year 2013.
The Swedish group generated revenue of RON381.5 million (EUR86.5 million) in Romania in 2013, up around 40% from 2012.
H&M’s main rival, Zara, did not publish 2013 figures and in the previous year Zara posted revenue of EUR74.5 million with a network of 20 stores. In the past year, the Spanish comany has opened just one unit. Zara is part of Spain’s group Inditex, which is also present with brands Bershka, Pull&Bear, Stradivarius, Oysho, Zara Home and Massimo Dutti in Romania. At group level, Inditex has higher revenue than H&M, but the Swedish group has only this brand in Romania.
H&M was one of the last strong brands that entered Romania, but it bet on aggressive expansion, getting to a total number of 30 stores, with the 31st to be opened in Galati on April 10.
The company initially bet on Romania’s largest cities, led by Bucharest, and then also expanded to smaller localities. H&M addresses average-income persons.
Romania is one of the best markets in the region for H&M and around three years since the company’s arrival, sales per store are up to 44% higher than those of other states in the region, according to ZF calculations based on the Swedish group’s annual report.
(English version by Catalina Apostoiu)