H&M posts strong second quarter performance
H&M Group has increased its second quarter net sales by 17% to SEK 54.5 billion after well-received collections led to a higher share of full-price sales and lower costs for markdowns.
In the three months to 31 May, the retailer’s pre-tax profit climbed by 33% to SEK 4.8 billion.
Commenting on the performance, Helena Helmersson, H&M chief executive, said: “Well-received collections have led to strong development, with a further increase in full-price sales and decrease in markdowns.
“Sales in physical stores increased substantially while online continues to do well. This once again shows the value of having both physical and digital channels which strengthen and complement each other. The integration of the sales channels is therefore ongoing, in parallel with continual initiatives – in particular within tech, the supply chain and sustainability.”
The quarter’s results meant that net sales increased by 20% to SEK 103.7 billion in the six months to 31 May.
H&M is expecting sales in June to decrease by 6% in local currencies year-on-year with paused sales in Russia, Belarus and Ukraine representing five percentage points of the decrease.
The group also said disruption and delays still exist in its supply chain, but are gradually being eased.
Helmersson added: “Despite the significant inflation in the world, customers must always feel confident that with all the H&M group’s brands they will find the best combination of fashion, price, quality and sustainability. With a strong customer focus, committed colleagues and a robust financial position we see good opportunities for profitable, long-term and sustainable growth.”
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