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Net sales of Swedish firm H&M at $5.04 bn in Q1 FY24

27 Mar '24

2 min read

Pic: Олександр Луценко - stock.adobe.com

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H&M saw net sales of SEK 53.69 billion ($5.04 billion) in Q1 FY24, a slight decrease from last year, but gross profit rose 7 per cent to SEK 27.65 billion, enhancing the gross margin to 51.5 per cent.
Operating profit soared to SEK 2.077 billion.
Post-tax profits reached SEK 1.2 billion.
The firm also reported a 22 per cent cut in greenhouse emissions.

Swedish multinational fashion retailer Hennes & Mauritz (H&M) Group has reported a slight net sales decrease to SEK 53.69 billion (approximately $5.04 billion) in the first quarter of fiscal 2024 (Q1 FY24), ending February 29, 2024, compared to SEK 54.87 billion in the previous year. However, gross profit saw a notable increase of 7 per cent, rising to SEK 27.65 billion from SEK 25.88 billion, which improved the gross margin to 51.5 per cent from 47.2 per cent.

Operating profit experienced a significant boost, reaching SEK 2.077 billion, up from SEK 725 million in the same period last year, translating to an operating margin of 3.9 per cent, up from 1.3 per cent. When adjusted for results from investments in associated companies and joint ventures, the operating profit stood at SEK 2.09 billion, marking a substantial improvement from a loss of SEK 274 million previously, the company said in a press release.

The results after tax also saw considerable growth, increasing to SEK 1.2 billion from SEK 540 million, with earnings per share rising to SEK 0.75 from SEK 0.33 in the same period of previous fiscal.

In addition to financial achievements, H&M Group made significant strides in its sustainability efforts. The company's annual and sustainability report for 2023 highlights a 22 per cent reduction in greenhouse gas emissions. Moreover, when adjusted for sales in SEK, this reduction reached 23 per cent.

“Development continued in the right direction in the first quarter with an improved gross margin and operating profit, lower inventory and strong cash flow. Our top priority is to continue improving the customer offering, the store experience and the supply chain in order to increase sales,” said Daniel Erver, CEO.

Fibre2Fashion News Desk (DP)

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