Helena Helmerson, CEO, H&M says, the fast fashion retailers’ sales will double by 2030 after reduction in discounts and clearing out of the company’s longstanding inventory buildup. Helmersson also aims to boost the brand’s operating margin by more than 10 per cent within three year. To reach these goals, she is boosting investments to about 10 billion kronor ($1 billion) this year. By November last year, the company’s inventory stood at $4 billion and it is yet to meet its target of reducing it to the level of 12 per cent of full-year sales.

To achieve this, the company relies on markdowns, which it expects will boost profitability in the first quarter. H&M also is reducing costs, planning net closures of 120 stores this year, mostly in Europe. H&M’s pretax profit rose 64 per cent to 6 billion kronor in the three months through November, beating analysts’ estimates. Sales in December and January increased 20 per cent. The company is rewarding investors with 3 billion-kronor share buyback program and it maintained its dividend at last year’s level. Helmersson expects the company’s long-term, sales growth will start increasing 10 per cent to 15 per cent a year again.