Operating profit increased to SEK 12,682 million (~$1.24 billion), with a 7.4 per cent operating margin, while the result after tax surged by 19 per cent, reaching SEK 8,503 million (~$833.29 million), or SEK 5.29 (~$0.52) per share. Cash flow from operating activities rose to SEK 24,782 million (~$2.43 billion).
Hennes & Mauritz reported net sales of $16.88 billion for the first nine months of 2024, nearly unchanged year-over-year.
Gross profit rose to $8.95 billion, improving the gross margin to 53 per cent.
Despite a drop in third-quarter profits, H&M expects a September sales increase of 11 per cent due to strong autumn collection performance and expansion efforts.
In the third quarter (Q3 FY24) (June 1 – August 31, 2024), net sales were SEK 59,011 million (~$5.78 billion), a decline from SEK 60,897 million in the previous year. Gross profit for this period amounted to SEK 30,133 million (~$2.95 billion) with a gross margin of 51.1 per cent. The operating profit dropped to SEK 3,507 million (~$344.69 million), corresponding to an operating margin of 5.9 per cent.
Despite these results, H&M noted positive trends in September, with an expected sales increase of 11 per cent in local currencies, driven by the successful launch of their autumn collection and store upgrades. H&M is also expanding its digital presence in China with new stores on major e-commerce platforms and plans to open its first store in Brazil by the end of 2025, the company said in a press release.
“Despite a challenging start, we are concluding the third quarter with sales on par with last year in local currencies and with good cost control. We are strengthening the H&M brand by investing in products, the shopping experience and marketing, which we are already seeing start to make an impact and which will contribute to increased sales and profitability,” said Daniel Ervér, CEO.
Fibre2Fashion News Desk (HU)