Companies

H&M announces results for 2023, CEO steps down

Feb 2, 2024 Sweden

The Sweden-based group has reported a 6% growth in net sales in 2023, as compared to the previous year. However, its CEO has stepped down amid sluggish sales at the start of the year

“Our improvement work in the supply chain and continued normalisation of the external factors that influence purchasing costs resulted in a stronger gross margin. A focus on cost control, profitability and increased inventory productivity also contributed to improved cash flow that is financing increased reinvestments in the business. For many consumers the year was marked by lower purchasing power because of high inflation and high interest rates. Despite this, our net sales in comparable markets increased in relation to 2022”, commented Helena Helmersson, CEO of H&M.

Full Year Results

In the twelve months to the 30^th of November 2023, the group reached 236.0 billion Swedish kronor ( (20.9 billion euros) in net sales, an increase of 6%, as compared with the same period in the previous financial year; in local currencies, net sales decreased by 1% year-over-year. Excluding Russia and Belarus, net sales grew by 8% in Swedish kronor and 1% in local currencies.

H&M also pointed out that the net sales of its brand portfolio increased by 15% in Swedish kronor and by 9% in local currencies.

The company’s gross profit rose by 7% during the last fiscal year, on a comparable basis to fiscal 2022, totalling 120.8 billion Swedish Kronor (10.7 billion euros). Accordingly, its full year gross margin improved to 51.2% from 50.7% due to “the improvement work in the supply chain, the cost and efficiency programme and the continued normalisation of the external factors”.

Overall, H&M achieved an increase in profit in 2023 of 145%, which amounted to 8.7 billion Swedish kronor (771 million euros) or 5.35 Swedish kronor per share (0.47 euros), as compared to the prior financial year.

At the end of last fiscal year, the group operated 4 369 stores, a decrease of 96 stores as compared to fiscal 2022, with 91 stores opening and 197 stores closing.

Fourth Quarter Results

In the three months to the 30^th of November, H&M group’s net sales remained stable at 62.7 billion Swedish kronor (5.6 billion euros), on a comparable basis to the same period of fiscal 2022. Excluding Russia and Belarus, net sales increased by 3% in Swedish kronor and decreased by 1% in local currencies.

The company reported a fourth quarter gross profit of 33.7 billion Swedish kronor (3.0 billion euros), which reflects an 8% growth, as compared to a similar period in the previous year, corresponding to a gross margin of 53.7%.

In the fourth quarter of fiscal 2023, H&M’s profits increased to 1.6 billion Swedish kronor (141.8 million euros), or 0.97 Swedish kronor per share (0.086 euros), from minus 864 million Swedish kronor (minus 76.6 million euros) in the same period of last year, or minus 0.54 Swedish kronor (0.048 euros) per share.

Update

From the 1^stof December 2023 to the 29^th of January 2024, the group’s net sales decreased 4% in local currencies, on a comparable basis to the same period of the previous year. In a surprise move, Helena Helmersson stepped down after four years as CEO and 26 years with the company, to be replaced by Daniel Erver. Read more here.

1 Swedish kròna = 0.089 eur

Image Credits: designscene.net

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