H&M Hennes & Mauritz AB group’s net sales in SEK increased by 9 percent in the first half-year to 112,488 million Swedish krona. In local currencies net sales increased by 1 percent.

As communicated earlier, for the second quarter, the company’s net sales increased by 6 percent to 57,616 million Swedish krona, while in local currencies, net sales were flattish compared with last year.

Commenting on the trading results, Helena Helmersson, H&M CEO said in a release: “We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year. With a robust financial position, stable cash flow and a well-balanced inventory, the H&M group stands strong. Our long-term goals remain in place. Already next year the operating margin is to reach 10 percent.”

H&M’s June sales up 10 percent

H&M sales for portfolio brands in the second quarter increased by 17 percent in SEK and by 12 percent in local currencies. Stock-in-trade decreased by 20 percent currency-adjusted compared with the previous year.

Sales for the H&M group during the period 1 -27 June 2023 increased by 10 percent in local currencies compared with the same period last year.

“The summer collections have been well received and the third quarter has got off to a good start. The conditions for increased growth as well as profitability continue to develop in a favourable direction,” added Helmersson.

The company further said that the 2023 annual general meeting authorised the board to start a share buyback programme for a maximum amount of 3 billion Swedish krona in the period up to the 2024 annual general meeting.

Highlights of H&M’s H1 and Q2 performance

The company said, gross profit for the period increased to 56,224 million Swedish krona corresponding to a gross margin of 50 percent.

Second quarter gross profit increased to 30,338 million Swedish krona, which corresponds to a gross margin of 52.7 percent.

Operating profit amounted to 5,466 million Swedish krona, corresponding to an operating margin of 4.9 percent. Operating profit for the second quarter was 4,741 million Swedish krona, which corresponds to a gross margin of 8.2 percent.

The company added that the result for the first half was negatively impacted by high raw materials and freight costs, a strong US dollar, increased energy costs and the effects of winding down the operations in Russia.

The result after tax was 3,828 million Swedish krona, corresponding to 2.35 Swedish krona per share in the first half period and 3,288 million Swedish krona or 2.02 Swedish krona per share in the second quarter.