Companies

H&M announces first half results

Jul 5, 2023 Sweden

The Sweden-based company saw its sales increase in the first half of fiscal 2023, but underlined the negative impacts of high raw materials and freight costs combined with a strong US dollar on results

“With the second quarter behind us, we can conclude that we have taken a number of further important steps towards our goals. We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year”, commented Helena Helmersson, CEO of H&M.

Second Quarter Results

In the second quarter of fiscal 2023, the company's net sales reached 57.62 billion Swedish Króna (4.87 billion euros), growing by 6% on a comparable basis to the same period of last year; in local currencies, net sales were flattish as compared with the second quarter of fiscal 2022.

H&M's gross profit increased to 30.34 billion Swedish Króna (2.56 billion euros) in the second quarter of the current year from 29.85 billion Swedish Króna (2.52 billion euros) in the same quarter of the prior year, which corresponds to a gross margin of 52.7%.

The company highlighted that “high raw materials and freight costs combined with a strong US dollar had a very negative impact on most purchases made for the second quarter when compared with the previous year”.

In the three months to the 31^st of May, the fast fashion company saw its profit for the period decline to 3.28 billion Swedish Króna (277.3 million euros) from 3.68 billion Swedish Króna (311.1 million euros) in the second quarter of fiscal 2022.

First Half Results

In the first six months of fiscal 2023, H&M's net sales increased by 9%, reaching 112.5 billion Swedish Króna (9.51 billion euros), as compared to the same period of last year; in local currencies, net sales grew by 1%.

The company's profit totalled 3.82 billion Swedish Króna (323.0 million euros) in the first half of the current fiscal year, slightly decreasing from the 3.90 billion Swedish Króna (329.7 million euros) registered in a similar period of the prior year.

June

The Sweden-based company also reported that sales from the 1^st to the 27^th of June grew by 10% in local currencies, as compared to the same period in 2022. “The summer collections have been well received, and the third quarter has got off to a good start. The conditions for increased growth, as well as profitability, continue to develop in a favourable direction”, added Helena Helmersson, CEO of H&M.

1 Swedish Króna = 0.085 euros

Image Credits: fashiongonerogue.com

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