H&M profits up but warns Covid consequences are “not over yet”
Sales at Swedish retailer H&M this month were higher than September 2020, but the retailer was unable to meet demand due to disruption and delays to supply.
In its latest financial results, the company reported an overall net sales increase of 13 per cent across the nine months to 31 August compared to the same period last year.
According to Reuters, H&M chief executive Helena Helmersson told media that bottlenecks impacting the business were mainly in production, transport, and ports. She added that the situation is now improving at the supplier end, but that H&M is preparing for more delays this quarter.
In the third quarter the company’s sales jumped by 14 per cent in comparison to 2020.
The H&M boss said that the increase in profit was mainly a result of well-received collections with more full-price sales, lower markdowns, and good cost control.
“With our continued transformation and our well-positioned customer offering we are optimistic that we will see long-term, profitable and sustainable growth for the H&M group,” said Helmersson.
“As restrictions have been eased in many markets store sales have started to pick up again, all while online sales have continued to grow.”
