Companies

H&M full year sales to rise

Dec 16, 2022 Sweden

The Sweden-based fashion group has released its sales development for the full year 2022, including the fourth quarter, ahead of the publication of final results on the 27th of January 2023

For the fiscal year ended on the 30^th of November, H&M is expecting a net sales increase of 12%, reaching 223.57 billion Swedish Krone (20.3 billion euros), on a comparable basis to fiscal 2021; in local currencies, net sales should rise by 6%. The company also highlighted that if it excluded the impact of Russia, Belarus, and Ukraine, net sales would rise by 15% in Swedish Krone and by 8% in local currencies.

Fourth Quarter

In the fourth quarter, which ran from the 1^st of September to the 30^th of November, the group's net sales totalled 62.45 billion Swedish Krone (5.76 billion euros), reflecting an increase of 10%, as compared to a similar period of last fiscal year; in local currencies, the net sales' development was flat. Yahoo recalls that the Swedish krona hit an all-time low against the US dollar on the 27^th of September, thus, during the reporting period.

Excluding Russia, Belarus and Ukraine, H&M's net sales would have grown by 11% in Swedish Krone and by 2% in local currencies during the fourth quarter, noted the group, as its "operations in Russia and Belarus were wound up during the quarter, with the remaining stock being sold off and the last stores having closed on the 30^th of November". The results of the quarter were also impacted by the temporary closure of 25 to 50 stores in China due to new COVID-19 outbreaks.

According to a research note by RBC Capital Markets, disclosed by yahoo, the fourth quarter numbers exceeded very slightly analysts expectations. RBC analyst Richard Chamberlain stated that H&M is facing "heavy gross margin headwinds", including exchange rates, raw materials, operating expenses and higher energy costs.

Image Credits: forbes.com

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