The UK arm of H&M’s profits after tax fell 19% to £36.4m for the year to 30 November 2015, as the retailer continued its store expansion programme.
Store sales were up 5.9% for the year. However, operating profit fell to 16% to £51.8m, down from £62m in 2013/14.
The UK represents 7.6% for H&M’s total gross worldwide sales, edging up from 7.4% in 2014. The UK is the third-largest market for the retailer.
A promotional market took its toll on margins as net margin fell 30% to 3.6%, down from 4.7% in 2014.
During the year the H&M group opened 18 stores in the UK: 16 H&Ms, one Cos and one & Other Stories. It closed seven H&M shops, leaving a total of 265.
The company plans to open a total of 10 H&M stores, two Cos stores, four & Other Stories and one Monki in 2016.