Swedish brand H&M’s sales climb 17% in Q2FY22

Gross profit rose to SEK 29,846 mn (25,049) in the second quarter. This corresponds to a gross margin of 54.8 per cent (53.9). The well-received collections led to costs for markdowns decreasing by around 1 percentage point in relation to sales, H&M said in a press release.

In the second quarter of fiscal 2022, the net sales of Swedish fashion brand H&M increased by 17 per cent to SEK 54,504 mn (46,509). In local currencies the increase was 12 per cent. In the first half of fiscal 2022, the H&M group’s net sales in SEK increased by 20 per cent to SEK 103,670 mn (86,569). In local currencies the increase was 15 per cent.

Sales in June 2022 is expected to decrease by 6 per cent in local currencies compared with June 2021. The paused sales in Russia, Belarus and Ukraine represent 5 percentage points of the decrease. The June figure should be seen in the light of a very strong comparison base in June 2021, an increase by 24 per cent, while July and August increased by 6 per cent.

H&M is accelerating its expansion in Latin America. A large number of leases have been signed for new stores.

“The H&M group’s sales increase in the quarter is a result of well-received collections with increased full-price sales and lower markdowns. With a well-positioned customer offering, combined with physical and digital sales channels that strengthen each other, we are fully focused on meeting customers’ ever-increasing expectations of affordable and sustainable fashion,” said Helena Helmersson, CEO.

“To navigate in a rapidly changing world it is more important than ever to be flexible and able to make quick decisions. As a direct consequence of the challenges in the world around us we are carrying out extensive work to prioritise initiatives, redistribute resources and ensure continued good profitability. We have a well-positioned customer offering and are fully focused on meeting customers’ ever-increasing expectations. Despite the significant inflation in the world, customers must always feel confident that with all the H&M group’s brands they will find the best combination of fashion, price, quality and sustainability. With a strong customer focus, committed colleagues and a robust financial position we see good opportunities for profitable, long-term and sustainable growth,” explained Helmersson.

Fibre2Fashion News Desk (RR)