Companies

H&M reports fourth quarter and full year results

Feb 7, 2025 Sweden

The Swedish fashion group has highlighted the strength of its online channel and improved profitability, despite lacklustre sales in the fourth quarter of its 2024 financial year

Sales and operating profit increased in the fourth quarter driven by strong online sales, well-received women’s fashion collections and effective cost control. By focusing on our core business and delivering on our plan, we are on track towards long-term, profitable growth”, commented Daniel Ervér, CEO of H&M.

Fourth Quarter

In the fourth quarter of fiscal 2024, which ended on the 30^thof November, the group’s net sales declined by 1%, as compared with the same period of the previous year, but increased by 3% in local currencies to 62.2 billion Swedish kronor (5.5 billion euros).

“The quarter started with strong sales in September, when the autumn collection was very well received, and the weather was favourable in many European markets”, reads the statement. However, “towards the end of the quarter sales development was affected by Black Friday occurring later than in the previous year”.

H&M’s operating profit in the final quarter of last year increased by 7% to 4.62 billion Swedish kronor (401.1 million euros), on a comparable basis to the same quarter of the previous year, with a corresponding improvement in the operating profit margin to 7.4% from 6.9%. This was mainly due to the good performance of the online channel, higher gross margin and good cost control.

The group’s net profit for the period totalled 3.1 billion Swedish Kronor (274.4 million euros), as compared to 1.6 billion Swedish kronor (141.7 million euros) in the fourth quarter of fiscal 2023.

Full Year Results

H&M’s full year net sales amounted to 234.5 billion Swedish Kronor (20.7 billion euros), reflecting a decrease of 1% on a reported basis and an increase of 1% in local currencies, on a comparable basis to the previous fiscal year.

However, the company recorded an operating profit of 17.3 billion Swedish Kronor (1.5 billion euros) and an operating margin of 7.4% in 2024, as compared to 14.4 billion Swedish Kronor (1.3 billion euros) and 6.2% in the prior year. Net profit also rose to 11.6 billion Swedish kronor (1.0 billion euros) from 8.7 billion Swedish kronor (770.3 million euros) in the previous year.

Outlook

“As we look ahead to 2025, we will continue to strengthen our core business and elevate our customer offering, while continuing the strong work on cost efficiency”, Ervér stated, acknowledging that despite “challenging macroeconomic conditions and geopolitical uncertainty” that could affect consumer sentiment, there are positive signs such as inflation and falling interest rates.

From the 1^stof December to the 28^th of January, the group’s net sales increased by 4% year-over-year in local currencies.

1 SEK = 0.089 EUR

Image Credits: hmgroup.com

Sweden Fashion H&M Quarter Results Results Year Results