Hennes & Mauritz AB ADR HNNMY equity, debt and subsidiaries

Accuracy score :
97%

Hennes & Mauritz AB ADR HNNMY

Summary (from latest annual and quarterly report)

  • Total equity: 5.7 billion USD
  • Market Cap is 228 billion SEK=25 billion USD ( the last price of the stock is 137 SEK, 1 Swedish Krona equals 0.11 United States Dollar)
  • Hennes & Mauritz is a global multi-brand fashion conglomerate that was founded in 1947
  • Total equity has decreased from 6.5 billion USD in 2017 to 5.7 billion in 2018
  • The company has 1.2 billion USD in cash on the account (latest quarterly report)
  •  In 2018 long-term debt is 190 million USD, short-term debt is 1.1 billion USD (In 2017 total debt was 1.12 billion USD)
  • Company's revenue increased in 2017 to 25.4 billion USD from 24.4 billion in 2016
  • Net income in 2017 was 1.77 billion USD, Net income in 2016 was 2.04 billion USD
  • In 2017 the company paid 1.7 billion USD dividend to its shareholders

Opinion about the company

Fundamentally it is a very good company and in the future, we can expect its growth (Total debt is 1.29 billion USD, big amount of cash on company's account, ROE is around 24 %).

H & M Hennes & Mauritz AB was founded in Sweden in 1947, H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. The H&M group includes eight clearly defined brands – H&M, COS, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home and ARKET. Together its brands offer customers a wealth of styles and trends in fashion, beauty, accessories and homewares – as well as experiences that now also include modern, healthy food. The H&M group has a matrix organization, which means that those responsible for the joint group functions are responsible for the efficiency of work within their function at each brand. Each brand has its own organization and managing director, and all the brands have their own local sales organizations.

Its flagship H&M brand accounts for the vast majority of revenue (93%), but the newer brands (COS, &Other Stories, Monki, Weekday, Cheap Monday, and newly launched Arket) are growing more quickly. H&M commands around 1.7% market share in a fragmented global apparel market. Just under 70% of revenue is generated in Europe and Africa, 14% in Asia and Oceania, and 17% in North and South America. The company had strong expansion during the 2017 year with a total net addition of 427 (413) new stores and 11 new H&M online markets. The H&M group has 43 online markets and 4,739 stores in 69 markets including franchise markets. In 2017, sales including VAT totaled SEK 232 billion

  • H&M brand has 4,288 stores
  • COS brand has 231 stores
  • Monki brand has 119 stores
  • Weekday, & Other Stories, Cheap Monday, H&M Home and ARKET have together 101 stores
  • In 2017, 388 new stores net were opened with Kazakhstan, Colombia, Iceland, Vietnam and Georgia as new H&M store markets for 2017
  • Decisions taken by the board during the year included a rapid online expansion, with eight new H&M online markets in 2017: Turkey, Taiwan, Hong Kong, Macau, Singapore, Malaysia, the Philippines and Cyprus
  • The stores that H&M is opening have very favorable and flexible leases, are in good locations and are profitable with a short payback period
  • Sales in Sweden, UK, Germany, USA, France, Italy and China represent more than 50% of total sales
  • Sales including VAT in the financial year 2016/2017 increased by 4 percent
  • In 2018 H&M plans to open around 390 stores and to close 150, resulting in a net addition of 240 new stores for the year. Most of the H&M store openings will be in emerging markets, while the closures will take place in established markets
  • A dividend to shareholders of SEK 9.75 per share was approved in 2017 (1 Swedish Krona equals 0.11 United States Dollar)

 

 H & M standalone subsidiaries and acquisitions :

  • H&M acquired Monki, Weekday and Cheap Monday in 2008 for around 60 million USD
  • In 2004 H&M acquired GAP Deutschland (10 stores in Germany including employees)for an undisclosed amount but not above 30 million USD
  • H&M brand accounts for the vast majority of revenue (93%) and is worth around 25 billion USD
  • Newer brands (COS, &Other Stories, Monki, Weekday, Cheap Monday, and newly launched Arket) are growing more quickly and they are worth around 5 billion USD

 

Total =  30 billion USD

  • The total number of shares in H&M is 1,655,072,000, of which 194,400,000 are class A shares (ten votes per share) and 1,460,672,000 are class B shares (one vote per share) - from the latest annual report
  • H & M Hennes & Mauritz AB is a Swedish public limited company, H&M’s largest shareholder is Stefan Persson and family, who via Ramsbury Invest AB hold all the class A shares, which represent 57.1 percent of the votes, as well as 476,323,738 class B shares, representing 14.0 percent of the votes. This means that as of 30 November 2017, Stefan Persson and family via Ramsbury invest AB represent 71.1 percent of the votes and 40.5 percent of the total number of shares. Ramsbury Invest AB is thus the parent company of H & M Hennes & Mauritz AB – from the latest annual report