Online sales continue to expand at Swedish clothing retailer H&M

30 Sep '21

2 min read

Pic: H&M Group

The H&M Group, a Swedish multinational clothing-retail company, has posted a 14 per cent sales growth to SEK 55,585 million (Swedish krona) in the third quarter (Q3) of FY21, over the same period of 2020. Even though stores have partially been allowed to open, the group’s online sales continue to increase with 22 per cent surge in the reported quarter.

“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,” Helena Helmersson, CEO at H&M Group, said in a press release.

During the third quarter ended on August 31, 2021, sales from Europe and Africa recorded a 6 per cent hike to SEK 39,021 million, while sales from North and South America expanded 51 per cent to SEK 10,751 million. However, Asia and Oceania registered a 17 per cent dip in sales to SEK 10,751 million.

Gross profit totalled to SEK 29,559 million (SEK 24,851 million), while operating profit more than doubled to SEK 6,272 million (SEK 2,700 million). H&M’s profit for the period accelerated to SEK 4,692 million (SEK 1,821 million).

As of August 31, 2021, H&M had 4,856 stores, down by 187 compared with the 5,043 stores in the same period of FY20, according to the company. Moreover, H&M will launch in Chile in autumn 2021 and in Peru, Colombia and Uruguay in the first half of 2022.

“The pandemic and its consequences are not yet over and we are humbled by the many challenges in the world around us that affect our business, which call for a high level of flexibility and drive. We have quickly adapted by prioritising cash flow, cost control and flexibility,” Helmersson added.

“With our continued transformation and our well-positioned customer offering – to meet customers’ ever-increasing expectations of good value and sustainable fashion – we are optimistic that we will see long-term, profitable and sustainable growth for the H&M group,” Helmersson concluded in the release.

Fibre2Fashion News Desk (JL)

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