H & M Hennes & Mauritz AB: 3-month report

02 April 2022, Mumbai:

First quarter (1 December 2021 – 28 February 2022)

The H&M group’s net sales in local currencies increased by 18 percent in the first quarter.

Converted into SEK the group’s net sales increased by 23 percent to SEK 49,166 m (40,060).

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Well-received collections led to a higher share of full-price sales and lower costs for markdowns.

At the same time, sales and profits for the quarter were impacted by the negative effects of the pandemic in many of the group’s major markets.

The result was also affected by increased growth-related initiatives, particularly within tech and the supply chain.

Gross profit increased to SEK 24,260 m (19,057). This corresponds to a gross margin of 49.3 percent (47.6).

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Operating profit increased to SEK 458 m (-1,128), corresponding to an operating margin of 0.9 percent (-2.8).

For rolling 12 months the operating margin was 8.1 percent (-0.4).

The group’s profit after tax increased to SEK 217 m (-1,070), corresponding to SEK 0.13 (-0.65) per share. Cash flow from operating activities amounted to SEK 3,624 m (5,936).

Financial net cash increased to SEK 17,446 m (2,199). Cash and cash equivalents plus undrawn credit facilities amounted to SEK 42,848 m (42,432).

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“We are deeply concerned about the war in Ukraine and are following developments closely. We stand with all those around the world who are calling for peace. Once again, we have to be flexible and act quickly as circumstances change. H&M Group, H&M Foundation and the Erling-Persson Foundation have to date donated around SEK 170 m as well as clothes and other necessities to organisations including UNHCR, Save the Children, the Red Cross and UNICEF,” says Helena Helmersson, CEO.

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