Swedish fashion brand H&M has reported that its net sales increased by 1% in the first half-year (H1) of fiscal 2024 (FY24) to Skr113.27bn ($10.73bn) from Skr112.48bn in H1 FY23.
Gross profit was Skr61.22bn in H1 FY24, an increase from Skr56.22bn in the same period of fiscal 2023.
This corresponds to a gross margin of 54%, increasing from 50% in the same period of the previous year.
The company’s operating profit increased to Skr9.17bn in H1 FY24, compared with Skr5.46bn in H1 FY23.
Its earnings per share for the period were Skr3.85 compared with Skr2.35 a year earlier.
Cash flow from operating activities increased to Skr16.56bn in H1 FY24 from Skr12.48bn in H1 FY23.
In the second quarter (Q2) of fiscal 2024, the gross profits of H&M increased by 11% to Skr33.56bn, compared with Skr30.33bn in Q2 of fiscal 2023.
This corresponds to a gross margin of 56.3% compared with 52.7% in Q2 FY23.
The company’s operating profit increased to Skr7.09bn m in Q2 FY24, compared with Skr4.74bn in the same period of the previous year.
The H&M group’s net sales increased by 3% in the second quarter to Skr59.60bn against Skr57.61bn in Q2 FY23.
Its earnings per share for Q2 FY24 were Skr3.11, up from Skr2.02 a year previously.
Selling and administrative expenses increased by 3% to Skr26.44bn, from Skr25.58bn in Q2 FY23.
H&M group CEO Daniel Ervér said: “We achieved our best results for many years in the second quarter, showing once more the H&M group’s strength and robust financial position, with strong cash flow as well as improved profitability and sales.
“We are now raising our ambitions further to strengthen the brand, the customer offering and the shopping experience. With a focus on our customers, committed colleagues and a faster pace of investment in the second half of the year, we see good conditions for continued profitable, long-term and sustainable growth.”
H&M group operated 4,319 stores as of 31 May 2024.
The company plans to open 100 new stores and close 160 stores in FY24, a net decrease of 60.
