Swedish firm H&M's net sales at $10.69 bn in H1 FY24

Swedish multinational fashion retailer Hennes & Mauritz (H&M) has reported an increase in net sales by 1 per cent in the first half of fiscal 2024 (H1 FY24), reaching Swedish krona (SEK) 113.274 billion (approximately $10.69 billion) compared to SEK 112.488 billion in the same period last year. In local currencies, net sales were in line with the previous year. Gross profit saw a significant rise, climbing to SEK 61.224 billion from SEK 56.224 billion, resulting in a gross margin of 54 per cent, up from 50 per cent.

Operating profit surged to SEK 9.175 billion, up from SEK 5.466 billion, corresponding to an operating margin of 8.1 per cent, compared to 4.9 per cent in the previous year, the company said in a press release.

Selling and administrative expenses increased by 1 per cent in SEK but remained consistent with the previous year in local currencies. The result after tax also improved significantly, rising to SEK 6.196 billion from SEK 3.828 billion, equating to SEK 3.85 per share, up from SEK 2.35 per share.

In the second quarter (Q2 FY24), net sales increased by 3 per cent to SEK 59.605 billion from SEK 57.616 billion in the same period last year, with local currency sales also up by 3 per cent. Gross profit jumped by 11 per cent, reaching SEK 33.569 billion compared to SEK 30.338 billion, resulting in a gross margin of 56.3 per cent, up from 52.7 per cent.

Selling and administrative expenses rose by 3 per cent to SEK 26.446 billion from SEK 25.585 billion, with a 2 per cent increase in local currencies. Operating profit for the quarter increased to SEK 7.098 billion from SEK 4.741 billion, corresponding to an operating margin of 11.9 per cent, up from 8.2 per cent.

Adjusted for one-time costs associated with the cost and efficiency programme, operating profit amounted to SEK 7.297 billion, up from SEK 4.671 billion, with an operating margin of 12.2 per cent compared to 8.1 per cent in the same quarter of the previous year. The result after tax increased by 52 per cent, reaching SEK 4.995 billion from SEK 3.288 billion, equating to SEK 3.11 per share, up from SEK 2.02 per share.

“The H&M group’s profitability performance during the first half of the year was strong as a result of gradual improvements in sales development, a strengthened gross margin and continued good cost control. The spring and summer collections have been very well received, which is reflected in the improved sales in the second quarter. We are seeing growth within all customer groups and a positive trend in all regions,” said Daniel Erver, CEO.

Fibre2Fashion News Desk (DP)