Despite a drop in sales, H&M increases annual profit by a third

Business

H&M store front. Credits: H&M.

The Swedish clothing group Hennes & Mauritz AB suffered a slight decline in sales in the 2023/24 financial year, but was able to improve its results thanks to successful cost-cutting measures. This is according to the latest annual report, which the parent company of brands such as H&M, Cos, Monki, Weekday, & Other Stories and Arket presented on Thursday.

Accordingly, group sales in the financial year ending at the end of November amounted to 234.5 billion Swedish kronor (17.14 billion pounds). This represented a decrease of 1 percent compared to the previous year. In the respective local currencies, however, revenues grew by 1 percent.

CEO Daniel Ervér sees the group 'on the right track'

The company was able to increase sales in Western Europe (+1 percent), Eastern Europe (+8 percent) and Southern Europe (+1 percent). However, revenues declined in the Nordic countries (-3 percent), in America (-4 percent) and in the Asia-Pacific region (-4 percent).

Thanks to a higher gross margin and targeted savings, the group was able to increase its operating profit by 19 percent to 17.3 billion Swedish kronor. Net profit attributable to shareholders increased by 33 percent to 11.6 billion Swedish kronor (848 million pounds).

In view of the current developments, CEO Daniel Ervér saw the group as "on the right track" in its reform efforts. The clothing retailer also had a solid start to the new 2024/25 financial year. In the period from December 1 to January 28, revenues were 4 percent above the corresponding level of the previous year, adjusted for currency effects, the company announced.

This article originally appeared on FashionUnited.DE. It was translated to English using AI and edited by Rachel Douglass.

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