News Flash

Swedish company H&M's net sales surge 6% in Q3 FY23

27 Sep '23

2 min read

Pic: Sorbis / Shutterstock.com

Insights

H&M Group reported a 6 per cent rise in net sales to SEK 60,897 million in Q3 FY23 and a significant increase in operating profit to SEK 4,739 million, up from SEK 902 million last year.
The company's operating profit in the first nine months of FY23 rose to SEK 10,205 million, with after-tax results jumping 61 per cent to SEK 7,147 million.

Swedish fashion firm Hennes & Mauritz (H&M) Group has reported a net sales increase of 6 per cent to SEK 60,897 million (approximately $5,527.18 million) in the third quarter of financial year 2023 (Q3 FY23), up from SEK 57,450 million in the same period last year. When accounted for in local currencies, the net sales remained relatively flat compared to the previous year.

Sales for portfolio brands within the group saw a 16 per cent increase in SEK and a 10 per cent rise in local currencies. Gross profit also soared in Q3 FY23, registering a 10 per cent increase to reach SEK 31,015 million, compared to SEK 28,160 million in Q3 of the previous year. This reflects a gross margin of 50.9 per cent, an improvement over last year's 49 per cent, the company said in a press release.

Selling and administrative expenses decreased by 4 per cent to SEK 26,271 million in Q3 FY23, a substantial drop from SEK 27,258 million last year. In local currencies, these expenses decreased by an even more impressive 10 per cent. As a result, operating profit increased significantly to SEK 4,739 million, up from SEK 902 million, corresponding to an operating margin of 7.8 per cent compared to just 1.6 per cent in the previous year.

For the nine-month period spanning from December 1, 2022, to August 31, 2023, the H&M Group's net sales in SEK increased by 8 per cent, totalling SEK 173,385 million, while remaining flat in local currencies. Gross profit rose to SEK 87,239 million, corresponding to a gross margin of 50.3 per cent. However, selling and administrative expenses slightly increased to SEK 78,016 million, although they decreased by 3 per cent when calculated in local currencies.

The nine-month operating profit escalated to SEK 10,205 million, which represents an operating margin of 5.9 per cent. This is a notable improvement compared to SEK 6,348 million and a margin of 3.9 per cent for the same period last year.

The after-tax result also showed progress, jumping 61 per cent to SEK 7,147 million, or SEK 4.39 per share, compared to SEK 4,430 million, or SEK 2.68 per share in the prior year.

“The focus during the quarter has been on profitability and inventory efficiency, resulting in strong cash flow and good profit development. We are taking further steps towards our goals and creating conditions for profitable growth over time,” said Helena Helmersson, CEO.

Fibre2Fashion News Desk (DP)

More Hennes and Mauritz Group News... More Fashion News - Sweden...