Swedish retailer H&M's Q2 FY21 sales grow 75% to SEK 46,509 mn

01 Jul '21

2 min read

Pic: Shutterstock

The H&M Group, a Swedish multinational clothing-retail company, has reported 75 per cent sales increase to SEK 46,509 million (Swedish krona) in its second quarter (Q2) FY21 ended on May 31, 2021, compared to SEK 28,664 million in the same period of previous fiscal. The group’s profit for the period rose to SEK 2,767 million (Q2 FY20: loss SEK 4,991 million).

“As more and more people are vaccinated and restrictions are eased, the world is gradually opening up and customers can once again visit our stores. With the combination of much-appreciated collections, rapid adaptation and further improvements, our recovery is strong. Despite continued restrictions, sales increased significantly compared with the previous year,” Helena Helmersson, CEO at H&M Group, said in a press release.

Gross profit during Q2 FY21 was SEK 25,049 million (SEK 13,284 million), while operating profit was SEK 3,852 million (loss: SEK 6,188 million). H&M’s online sales for the reported period increased 32 per cent.

In March H&M opened online in Qatar via franchise and during the quarter H&M was also successfully launched on the e-commerce platform Zalora in Indonesia, the Philippines, Malaysia and Singapore.

Regionally, the group’s sales from Germany in Q2 FY21 grew 28 per cent to SEK 6,297 million (SEK 5,187 million), while US sales escalated 269 per cent to SEK 7,111 million (SEK 2,341 million). Moreover, sales from UK were SEK 3,308 million (SEK 1,749 million), Sweden SEK 2,035 million (SEK 1,625 million), Russia SEK 2,102 million (SEK 804 million), and China SEK 1,624 million (SEK 2,259 million).

In the first half of 2021, the H&M group has opened 50 new stores including franchise while closed 155 stores. The group had a total of 4,913 (5,058) stores as of May 31, 2021, of which 271 (277) were operated by franchise partners.

“In the wake of the pandemic we are seeing increasing demand globally for fashion that provides value for money and is sustainable, which we are well positioned for. Our brands are also offering an increasing number of services for a more sustainable lifestyle,” Helmersson added.

“In combination with our work to become circular and climate positive, we are also increasing the share of sustainable and renewable materials. We are developing the existing business and are also creating new complementary revenue streams. Together with profitable online growth and continued store optimisation this will contribute to long-term, profitable and sustainable growth for the H&M group,” Helmersson concluded in the release.

Fibre2Fashion News Desk (JL)

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