After reporting a 17% increase in gross profits in 2014, Hennes & Mauritz AB (H&M) has plans to open 400 new stores in 2015. The company, with brands including H&M, & Other Stories, H&M Home and Cos, also opened 379 net new stores in 2014.
While the bulk of the expansion will take place in existing markets, with most of the openings in the U.S. and China, H&M also will expand to several new markets including South Africa and India in 2015, according to a company statement. The fast-fashion retailer’s online presence will further expand into new European markets as well, including Belgium, Bulgaria, the Czech Republic, Hungary, Poland, Portugal, Romania, Slovakia and Switzerland.
In addition to its expansion plans, H&M will debut a new brand concept in 2015, called H&M Beauty. The new brand will launch in approximately 900 stores and online in autumn 2015. The concept is set to include a range of make-up, body care and hair care products.
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The store and brand expansions reflect the company’s recent financial success. H&M’s FY 2014 net profit, ended Nov. 30, 2014, rose 17% to 19.98 billion Swedish kronor (SEK), or approximately $2.44 billion in U.S. dollars.
“Well-received collections for all our brands and continued strong expansion both in stores and online have helped increase our market share and have further strengthened our position in the market,” said Karl-Johan Persson, CEO of H&M. “As always, we worked on continuous improvements during the year in order to be a leader in everything we do and the preferred choice for our customers. We have made many long-term investments in IT, online sales, new brands and in broadening the product range.”
