The group confirmed that sales in 2022 increased by 12%, year-over-year, reaching 223.55 billion Swedish kronor (19.7 billion euros); in local currencies, sales rose by 6%. H&M added that excluding Russia, Belarus and Ukraine, sales were up by 15% in Swedish krona and 8% in local currencies.

"Having left the worst of the negative effects of the pandemic behind us, war broke out in Ukraine. We quickly decided to pause sales in the countries affected and later to wind down our business in Russia and Belarus. Our decision to wind down the business in Russia, which was an important and profitable market, has had a significant negative impact on our results", commented Helena Helmersson, CEO of H&M.  Thus, full year results had a one-time costs impact of 2.59 billion Swedish kronor due to the decision of winding down the Russian operations, but also due to  "the one-time charge for the cost and efficiency programme that was initiated at the end of the year", she said.

In the 12 months to the 30^th of November, the group's profit after tax totalled 3.57 billion Swedish kronor (314.5 million euros), which corresponds to 2.16 Swedish per kronor per share (0.19 euros). Adjusted for the one-time costs, profit after tax amounted to 5.63 billion Swedish kronor (496.0 million euros), or 3.41 Swedish kronor per share (0.30 euros).

In the last quarter of fiscal 2022, alone, net sales rose by 10%, reaching 62.43 billion Swedish kronor (5.50 billion euros), as compared to the same period of the prior year; in local currencies, the net sales development was flat. Excluding Russia, Belarus and Ukraine, sales grew by 11% in Swedish krona and 2% in local currencies.

Fiscal 2023 Outlook

"Sales in the new financial year have started well. The external factors are still challenging, but are moving in the right direction. Combined with our investments and efficiency improvements, there are very good prerequisites for 2023 to be a year of increased sales, and improved profitability. Thus, our goal of achieving a double-digit operating margin for full-year 2024 remains in place", stated Helena Helmersson, CEO.

The fashion group reported that sales increased by 5% in local currencies from the 1^st of December 2022 through the 25^th of January 2023, on a comparable basis to the same period of the prior fiscal year. Excluding Russia, Belarus and Ukraine sales were up by 9% in local currencies.