Operating profit increased to SEK 12,682 million (about $1,240 million) with an operating margin of 7.4%, while after-tax profit increased by 19% to SEK 8,503 million (about $833.29 million), or SEK 5.29 (about $0.52) per share. Cash flow from operating activities increased to SEK 24,782 million (about $2,430 million).
Hennes & Mauritz reported net sales of $16.88 billion in the first nine months of 2024, virtually unchanged from the previous year. Gross profit rose to $8.95 billion, with gross margin improving to 53%. Despite the drop in third-quarter profits, H&M expects September sales to rise by 11% due to the strong performance of the fall collection and expansion efforts.
In the third quarter (Q3 FY24) (June 1 to August 31, 2024), net sales were SEK 59,011 million (approx. USD 5,780 million), down from SEK 60,897 million a year earlier. Gross profit for the period amounted to SEK 30,133 million (approx. USD 2,950 million) with a gross margin of 51.1%. Operating profit decreased to SEK 3,507 million (approx. USD 344.69 million), corresponding to an operating margin of 5.9%.
Despite these results, H&M posted positive trends in September, with sales expected to rise by 11 percent in local currencies, driven by the successful launch of its fall collection and store renovations. H&M is also expanding its digital presence in China with new stores on major e-commerce platforms and plans to open its first store in Brazil by the end of 2025, the company said in a press release.
“Despite a difficult start, we concluded the third quarter with sales similar to last year in local currency and with good cost control. We are strengthening the H&M brand by investing in products, the shopping experience and marketing, something that we are already seeing begin to bear fruit and that will contribute to increased sales and profitability,” he said. Daniel Ervér, Executive Director.
Fibre2Fashion (HU) Press Desk
