Swedish brand H&M's sales climb 17% in Q2FY22

Gross profit rose to SEK 29,846 mn (25,049) in the second quarter. This corresponds to a gross margin of 54.8 per cent (53.9). The well-received collections led to costs for markdowns decreasing by around 1 percentage point in relation to sales, H&M said in a press release.

Sales in June 2022 is expected to decrease by 6 per cent in local currencies compared with June 2021. The paused sales in Russia, Belarus and Ukraine represent 5 percentage points of the decrease. The June figure should be seen in the light of a very strong comparison base in June 2021, an increase by 24 per cent, while July and August increased by 6 per cent.

H&M is accelerating its expansion in Latin America. A large number of leases have been signed for new stores.

“The H&M group’s sales increase in the quarter is a result of well-received collections with increased full-price sales and lower markdowns. With a well-positioned customer offering, combined with physical and digital sales channels that strengthen each other, we are fully focused on meeting customers’ ever-increasing expectations of affordable and sustainable fashion,” said Helena Helmersson, CEO.

“To navigate in a rapidly changing world it is more important than ever to be flexible and able to make quick decisions. As a direct consequence of the challenges in the world around us we are carrying out extensive work to prioritise initiatives, redistribute resources and ensure continued good profitability. We have a well-positioned customer offering and are fully focused on meeting customers’ ever-increasing expectations. Despite the significant inflation in the world, customers must always feel confident that with all the H&M group’s brands they will find the best combination of fashion, price, quality and sustainability. With a strong customer focus, committed colleagues and a robust financial position we see good opportunities for profitable, long-term and sustainable growth,” explained Helmersson.

Fibre2Fashion News Desk (RR)