Nine months (
- The
H&M group's net sales in SEK increased by 8 percent in the first nine months of the
financial year toSEK 173,385 m (161,120). In local currencies, net sales were flat compared with
the previous year. -
The gross profit increased to
SEK 87,239 m (82,266). This corresponds to a gross margin of 50.3 percent (51.1). -
Selling and administrative expenses amounted to
SEK 78,016 m (75,918). In local currencies, these expenses decreased by 3 percent. -
Operating profit increased to
SEK 10,205 m (6,348), corresponding to an operating margin of 5.9 percent (3.9). In 2022 one-time costs forRussia ofSEK 1,751 m were charged against the nine-month result. Adjusted for these one-time costs the increase compared with the previous year was 26 percent. -
The result after tax increased by 61 percent to
SEK 7,147 m (4,430), corresponding toSEK 4.39 (2.68) per share. -
Cash flow from operating activities increased to
SEK 24,742 m (18,221). -
Financial net cash amounted to
SEK 13,555 m (17,441). Cash and cash equivalents plus undrawn credit facilities wereSEK 43,918 m (45,700).
Third quarter (
- Net sales increased by 6 percent to
SEK 60,897 m (57,450) in the third quarter. In local currencies, net sales were flattish compared with the previous year. - Sales for Portfolio Brands in the third quarter increased by 16 percent in SEK and by 10 percent in local currencies.
-
Gross profit increased by 10 percent to
SEK 31,015 m (28,160). This corresponds to a gross margin of 50.9 percent (49.0). -
Selling and administrative expenses decreased by 4 percent to
SEK 26,271 m (27,258).
In local currencies, these expenses decreased by 10 percent. -
Operating profit increased to
SEK 4,739 m (902). This corresponds to an operting margin of 7.8 percent (1.6). One-time costs ofSEK 2,104 m for winding down the Russian operations were charged to the third quarter 2022. Adjusted for these one-time costs the increase compared with the previous year was 58 percent. -
The result after tax increased to
SEK 3,319 m (531), corresponding toSEK 2.04 (0.32) per share. -
Currency adjusted the stock-in-trade decreased by 21 percent compared with the previous year. Converted into Swedish kronor the stock-in-trade decreased by 14 percent to
SEK 40,358 m (47,141). The stock-in-trade in SEK represented 17.1 percent (21.6) of rolling 12-month sales. -
In the third quarter cash flow from operating activities improved by 118 percent to
SEK 12,257 m (5,630).
-
Sales during
September 2023 are expected to decrease by 10 percent in local currencies compared withSeptember 2022 . The discontinued operations inRussia account for 4 percentage points of the decrease. The figure for September should be seen in the light of unusually hot weather in several of the company's European markets, which has had a substantial negative impact on sales during the month. -
Further to the authorisation given by the annual general meeting, the board of directors has decided to buy back the company's own B shares for
SEK 3 billion starting from27 September 2023 . H&M is developing well inLatin America and plans to open its first store as well as online inBrazil
in 2025.H&M plans to gradually reopen most of its stores inUkraine fromNovember 2023 onwards.
"The focus during the quarter has been on profitability and inventory efficiency, resulting in strong cash flow and good profit development. We are taking further steps towards our goals and creating conditions for profitable growth over time," says
Comments by
During the quarter the focus has been on profitability and inventory efficiency, resulting in strong cash flow and good profit development. We are taking further steps towards our goals and creating good conditions for profitable growth over time.
Sales in the third quarter started strongly with pent-up demand for summer garments following a cold May in most of our major markets. The effect then gradually decreased during the summer. There was a weaker end to the quarter, with comparative figures affected by the temporary reopening in
In times of high inflation where household living costs are rising significantly it is more important than ever to offer customers the best price and unbeatable value for money. Our highest priority remains the customer offering, where work to improve the assortment and the customer experience is making progress, alongside further integration of the two channels. We are continuing our investments in areas such as tech, AI and the supply chain, which is enabling improved flexibility, faster response times and greater precision in buying. This leads to customers having access to an even wider and more relevant assortment.
Our store portfolio has reached a level where we now see fewer closures going forward while at the same time new stores will be opened. The stores are an important part of building our brand and we are increasing investments in stores to further elevate the customer experience. We are also creating new conditions for growth. During September
Since we temporarily closed our stores in
Our efforts to create conditions for profitable growth towards our long-term goals are taking us in the right direction. The cost and efficiency programme is proceeding at full speed and will continue to have an effect in the coming quarters. With a strong customer focus, improved cash flow and increased inventory efficiency our goal of an operating margin of 10 percent during 2024 remains.
Communication in conjunction with the nine-month report
The nine-month report, i.e.,
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Contact
+46 73 465 93 92 +46 8 796 55 00 (switchboard) +46 8 796 55 00 (switchboard) |
SE-106 38 Stockholm
Phone: +46-8-796 55 00, e-mail: info@hm.com
Registered office:
Information in this interim report is that which
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