H&M Group, the Swedish fashion giant, shows a slight increase in revenue for the second quarter.
- Net sales for H&M Group rose by 3% to SEK 59.6bn (£4.5bn) year-on-year.
- A significant 50% rise in operating profit was noted, reaching SEK 7.1bn (£530m).
- Despite the positive second quarter, June sales are expected to decline by 6% due to adverse weather conditions.
- CEO Daniel Ervér expresses optimism for continued growth with strategic investments planned.
H&M Group has announced a modest 3% increase in net sales for the second quarter, ending at SEK 59.6bn (£4.5bn) year-on-year. This highlights their capacity for growth amid challenging market conditions.
The group’s gross profit witnessed an 11% increase, totalling SEK 33.6bn (£2.6bn), while operating profit surged by 50% to SEK 7.1bn (£530m). The operating margin improved from 8.2% to 11.9%, underscoring the company’s enhanced profitability.
However, the company foresees a 6% decline in June sales compared to the previous year, attributing this to robust comparative figures from 2023 and unfavourable weather in key markets. The impact of these external factors was partially mitigated as sales recovered with improving weather conditions.
H&M’s spring and summer collections were generally well received, bolstering their performance. Nevertheless, the company anticipates challenges in maintaining its operational margin target of 10% for the 2024 financial year, due to rising material costs and exchange rate fluctuations.
CEO Daniel Ervér, who took over the leadership in January, remarked, “We achieved our best results for many years in the second quarter, showing once more the H&M group’s strength and robust financial position, with strong cash flow as well as improved profitability and sales.” He remains optimistic about the future, focusing on strengthening the brand, enhancing customer experience, and accelerating investment in the latter half of the year.
Despite short-term challenges, H&M Group remains optimistic about sustainable growth and profitability.
