“The H&M group’s increase in profit shows that the strong recovery is continuing – despite sales being partly affected by restrictions and delays associated with the pandemic. The results are explained by much-appreciated collections, lower markdowns and good cost control combined with the initiatives implemented in areas such as tech and the supply chain. As restrictions have been eased in many markets store sales have started to pick up again, all while online sales have continued to grow”, commented Helena Helmersson, H&M’s CEO.

Third Quarter Results

In the third quarter of 2021, net sales in local currencies grew by 14% to 55 585 million Swedish Krona (5.5 billion euros), as compared to the same period last year. Online sales have also increased during this quarter by 22% in local currencies and 17% in Swedish Krona while store sales have also begun to recover. At the beginning of the quarter, 180 stores were temporary close, but by 31^st of August, the figure diminished to 100.

In the third quarter of the current fiscal year, the operating margin was of 11.3%, while profit after tax increased to 4 692 million Swedish Krona (463 million euros), corresponding to 2.83 Swedish Krona per share (0.28 euros per share).

Despite positive results for the quarter, the company reported that sales continued to be affected by the ongoing pandemic, with considerable variations between markets. Lockdowns and restrictions have tarnished the recovery, particularly in Asia. Delays have also affected sales to some extent and may continue doing so, as H&M cannot fully meet the demand for certain types of products due to both production from suppliers and transport and congestion of ports.

Image credits: H&M