Swedish low-cost fashion brand Hennes & Mauritz AB said on Thursday that its profit fell by about 10 percent to 3.5 billion crowns ($ 390 million) in the fourth quarter, as consumers continued to make online purchases.
Quarterly sales from Stockholm rose by 12 percent to 56.4 million crowns ($ 6.22 million), while sales throughout the year rose 5 percent to $ 210.4 billion ($ 23.2 billion) .
Executive Director Karl-Johan Persson said 2018 was a "challenging year," but that the company changed to adapt to new customer habits, including more online purchases.
"Changing consumer behavior and technological innovations will continue to change as and when people are buying," he said. "We need to go further, and it will continue to be a challenge, but the progress that we have achieved … strengthens the strength of our strategy and gives us the confidence to be at full speed."
The Group continued to expand its online sales, which rose 22 percent to about $ 30 billion ($ 3.3 billion). Online sales now account for 14.5 percent of the company's total sales.
In addition to H & M, the group also includes brands like COS, Monk, Weekend, Cheap Monday and other stories, H & M HOME, ARKET and Afound. There are about 4,900 stores in the 71 markets and over 177,000 employees. Internet sales in 47 markets.