Press release
H & M Hennes & Mauritz AB Nine-month report
Nine months (1 December 2020 – 31 August 2021)
- The H&M group’s net sales in local currencies increased by 13 percent in the first nine months of the financial year compared with the corresponding period last year. Converted into SEK the group’s net sales amounted to SEK 142,154 m (134,482). The pandemic led to reduced footfall as a result of continued restrictions and store closures. At the most, around 1,800 stores were temporarily closed.
- Profit after financial items increased to SEK 8,297 m (-1,613). The group’s profit after tax amounted to SEK 6,389 m (-1,242), corresponding to SEK 3.86 (-0.75) per share.
- Cash flow from operating activities increased to SEK 37,210 m (15,995).
- Financial net cash increased to SEK 24,874 m (-5,853). Cash and cash equivalents plus undrawn credit facilities amounted to SEK 55,408 m (41,413).
Third quarter (1 June 2021 – 31 August 2021)
- The H&M group’s net sales in local currencies increased by 14 percent in the third quarter 2021 compared with the corresponding period last year. Converted into SEK net sales increased to SEK 55,585 m (50,870). At the start of the quarter around 180 stores were temporarily closed and at the end around 100 stores remained closed.
- Online sales increased by 22 percent in local currencies and 17 percent in SEK.
- Store sales have started to recover as restrictions have been eased in many markets.
- Gross profit increased by 19 percent to SEK 29,559 m (24,851). This corresponds to a gross margin of 53.2 percent (48.9).
- Profit after financial items increased by 158 percent to SEK 6,093 m (2,365).
- The operating margin was 11.3 percent (5.3).
- Profit after tax increased to SEK 4,692 m (1,821), corresponding to SEK 2.83 (1.10) per share.
- The stock-in-trade decreased to SEK 36,867 m (42,076).
- The board of directors is proposing that a cash dividend of SEK 6.50 per share is paid in November 2021. This is based on significantly improved profitability, a strong financial position with financial net cash of SEK 24,874 m, more stable market conditions and a good outlook. There has been no resolution on a dividend since spring 2019. A dividend proposal in January 2020 was withdrawn in March 2020 due to the pandemic.
- The new autumn collections have been well received. Sales in September 2021 were slightly higher than in the corresponding month the previous year in local currencies, even though demand was not able to be fully met because of disruption and delays in product flow. Currently around 50 stores are temporarily closed.
- H&M online will launch in Chile in autumn 2021 and in Peru, Colombia and Uruguay in the first half of 2022.
- Five new H&M markets will launch in 2022. Ecuador, North Macedonia and Kosovo, and via franchise in Costa Rica and Cambodia.
“The H&M group’s increase in profit for the quarter is mainly a result of well-received collections with more full-price sales, lower markdowns and good cost control. With our continued transformation and our well-positioned customer offering we are optimistic that we will see long-term, profitable and sustainable growth for the H&M group,” says
Helena Helmersson, CEO.
Comments by Helena Helmersson, CEO
“The H&M group’s increase in profit shows that the strong recovery is continuing – despite sales being partly affected by restrictions and delays associated with the pandemic. The results are explained by much-appreciated collections, lower markdowns and good cost control combined with the initiatives implemented in areas such as tech and the supply chain. As restrictions have been eased in many markets store sales have started to pick up again, all while online sales have continued to grow.
To further strengthen our competitiveness the group continues to work to constantly improve both the customer offering and the customer experience in response to customers’ increased expectations, such as being able to shop in a smooth and convenient way – when, where and how they choose.
Our customer offering makes it possible for many to access sustainable fashion and express their own personal style. Our financial strength and long-term approach give us the ability to invest in innovations within tech development, materials and sustainable initiatives, with an ambition to lead the change in the fashion industry towards becoming circular and renewable. This was recognised recently when the H&M group was named as the only retail company in the world to live up to the UN Global Compact sustainability principles.
The pandemic and its consequences are not yet over and we are humbled by the many challenges in the world around us that affect our business, which call for a high level of flexibility and drive. We have quickly adapted by prioritising cash flow, cost control and flexibility. With our continued transformation and our well-positioned customer offering – to meet customers’ ever increasing expectations of good value and sustainable fashion – we are optimistic that we will see long-term, profitable and sustainable growth for the H&M group.”Read more about our initiatives in the section Initiatives for an improved customer experience on page 12.
Communication in conjunction with the nine-month report
The nine-month report, i.e. 1 December 2020 – 31 August 2021, will be published at 08:00 CEST on 30 September 2021 and will be followed by a telephone conference at 09:00 CEST for the financial market and media hosted by CEO Helena Helmersson, CFO Adam Karlsson and Head of IR Nils Vinge. The telephone conference will be held in English.
For log in details for the telephone conference please register at hmgroup.com or via this link: http://emea.directeventreg.com/registration/6370107.
To book interviews with CEO Helena Helmersson, CFO Adam Karlsson and Head of IR
Nils Vinge in conjunction with the nine-month report on 30 September 2021, please contact:
Kristina Stenvinkel, telephone: +46 8 796 39 08, e-mail: stenvinkel@hm.com
Contact
Nils Vinge, Head of IR +46 8 796 52 50
Helena Helmersson, CEO +46 8 796 55 00 (switchboard)
Adam Karlsson, CFO +46 8 796 55 00 (switchboard)
H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46-8-796 55 00, fax: +46-8-20 99 19, e-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220
For more information about the H&M group visit hmgroup.com.
Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CEST) on 30 September 2021. This interim report and other information about the H&M group, is available at hmgroup.com.
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, & Other Stories, H&M HOME and ARKET as well as Afound. The H&M group has 53 online markets and approximately 4,850 stores in 75 markets including franchise markets. In 2020, net sales were SEK 187 billion. The number of employees amounts to approximately 153,000. For further information, visit hmgroup.com.