Income was flat in native forex phrases and earnings sank 30 % within the third fiscal quarter at Hennes & Mauritz Group, with macro pressures and a cold begin to the summer season taking their toll.
The Stockholm-based group mentioned Thursday that income was 60.89 billion Swedish kronor, or 5.38 billion euros at present trade. Revenue after tax was 2.31 billion Swedish kronor, or 203.7 million euros at present trade.
Working revenue was down 26 % to three.51 billion Swedish kronor, or 309.7 million euros, with adjusted working margin broadly in step with the corresponding interval final yr. The corporate mentioned that gross sales and administrative bills elevated by 1 % within the interval.
“Regardless of a difficult begin, we’re concluding the third quarter with gross sales on par with final yr in native currencies and with good value management,” mentioned the group CEO Daniel Ervér.
“We’re strengthening the H&M model by investing in merchandise, the purchasing expertise and advertising, which we’re already seeing begin to make an influence and which is able to contribute to elevated gross sales and profitability,” he mentioned.
Arduous occasions are anticipated to persist, with H&M saying that the working margin for the complete fiscal yr is ready to be decrease than 10 %. Within the third fiscal quarter it was 5.9 %, down from 7.8 % within the corresponding interval final yr.
Within the first 9 months, it was 7.4 %, up from 5.9 % final yr.
Ervér described 2024 as a yr wherein H&M is “laying the muse for future development, growing the tempo of enhancements within the buyer providing, and deprioritizing issues that don’t strengthen our manufacturers or contribute to our gross sales and profitability.”
He famous that buyers’ residing prices have remained excessive throughout the yr, “and on the similar time we proceed to see turbulence on this planet round us. Exterior components have impacted our gross sales income and buying prices greater than we anticipated.”
He mentioned the corporate was strengthening its flagship H&M model by investing in merchandise, the purchasing expertise and advertising and was already seeing that advantages.
“We’re assured that our plan will contribute to elevated gross sales and profitability,” he added.