#Retail & Brands

2024-03-28

H&M Hennes & Mauritz with increased profit in first quarter 24

In the first quarter (1 December 2023 – 29 february 2024) the H&M group’s net sales amounted to SEK 53,699 m (54,872). Gross profit increased by 7 percent to SEK 27,655 m (25,886). This corresponds to a gross margin of 51.5 percent (47.2). Operating profit amounted to SEK 2,077 m (725), corresponding to an operating margin of 3.9 percent (1.3). Adjusted for result from investments in associated companies and joint ventures of SEK -14 m (999) the operating profit amounted to SEK 2,091 m (-274), corresponding to an improvement in profit of SEK 2,365 m.

The result after tax increased to SEK 1,201 m (540), corresponding to SEK 0.75 (0.33) per share. Cash flow from operating activities amounted to SEK 3,967 m (4,986). Financial net cash amounted to SEK 6,585 m (10,424). Cash and cash equivalents plus undrawn credit facilities were SEK 38,710 m (38,923). Currency adjusted the stock-in-trade decreased by 7 percent compared with the previous year. Converted into SEK the stock-in-trade decreased by 8 percent to SEK 37,630 m (41,040). The stock-in-trade in SEK represented 16.0 percent (17.9) of rolling 12-month sales.

The H&M group’s sales in the period 1 – 25 March 2024 increased by 2 percent in local currencies compared with the same period the previous year. As previously communicated, the H&M group and Vargas Holding have co-founded Syre, which aims to rapidly scale textile-to-textile recycling of polyester and contribute to a more sustainable textile industry.

Today the H&M group publishes its annual and sustainability report 2023. Among other things, the report shows a 22 percent reduction in greenhouse gas emissions in 2023. In relation to sales in SEK the decrease was 23 percent.*

The annual general meeting will be held on 3 May 2024 to resolve, among other things, on the board’s proposed dividend of SEK 6.50 per share, to be paid in two instalments, and on a general authorisation allowing the board to buy back the group’s own B shares in the period up to the 2025 annual general meeting. This general authorisation is one of the tools for the board to use if surplus liquidity is identified. If the annual general meeting authorises the board and the board chooses to utilise this authority, amounts and other details will be communicated.

“Development continued in the right direction in the first quarter with an improved gross margin and operating profit, lower inventory and strong cash flow. Our top priority is to continue improving the customer offering, the store experience and the supply chain in order to increase sales, said CEO Daniel Ervér.

* Refers to science-based targets for the company’s entire value chain in scope 3 and excludes the use of sold products. The baseline is 2019. By 2030 at the latest the H&M group is to reduce its scope 1, 2 and 3 greenhouse gas emissions by 56 percent.

** Stock-in-trade in SEK as a share of rolling 12 months sales.

“Production is a product”

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“We need to move away from the price trap and return to a value-driven mindset.”

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Circ launches first denim collection with H&M featuring TENCEL™ | Circ® with REFIBRA™ technology

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Recover™ secures multi-year recycled cotton agreement with H&M

Recover™ has signed a multi-year agreement with H&M to support the integration of its recycled cotton fiber, RCotton, for use in H&M’s products. Since early 2024, H&M and Recover™ have collaborated on product development, which now enables scaled commercial introduction of Recover™ mechanically recycled cotton into H&M’s collections.

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PERFORMANCE DAYS announces new focus topic & forums for October 2026

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Febratex 2026 to be the largest edition of the leading textile trade fair in the Americas with 10 exhibition halls

Febratex 2026 will be the largest edition in the history of the leading textile trade fair in the Americas. Dedicated to the textile and apparel manufacturing industries, the event will take place from August 18–21, 2026, in Blumenau, Santa Catarina, Brazil, with a strong focus on technology, sustainability, and business generation.

Cotton Brazil Dialogues field trip brings international stakeholders closer to Brazil’s cotton production chain

How do you build trust across the global textile value chain? By opening the farm gates. This is the principle behind the Cotton Brazil Dialogues. At the end of July, the programme welcomed its first group of international participants for a five-day immersion into Brazilian cotton production, combining field visits with technical workshops to showcase the quality, sustainability, innovation and traceability behind one of the world’s leading cotton origins.