Press release
H & M Hennes & Mauritz AB Six-month report
First half-year (1 December 2021 – 31 May 2022)
- The H&M group’s net sales in SEK increased by 20 percent in the first half-year to SEK 103,670 m (86,569). In local currencies the increase was 15 percent.
- Well-received collections led to a higher share of full-price sales and lower costs for markdowns.
- Gross profit increased to SEK 54,106 m (44,106). This corresponds to a gross margin of 52.2 percent (50.9).
- Operating profit increased to SEK 5,446 m (2,724), corresponding to an operating margin of 5.3 percent (3.1). For rolling 12 months the operating margin was 8.3 percent (4.9).
- The group’s profit after tax increased to SEK 3,899 m (1,697), corresponding to SEK 2.36 (1.03) per share.
- Cash flow from operating activities amounted to SEK 12,591 m (20,219).
- Financial net cash increased to SEK 16,313 m (12,799). Cash and cash equivalents plus undrawn credit facilities amounted to SEK 44,483 m (43,517).
Second quarter (1 March 2022 – 31 May 2022)
- Net sales increased by 17 percent to SEK 54,504 m (46,509). In local currencies the increase was 12 percent. Excluding Russia, Belarus and Ukraine sales increased by 17 percent in local currencies.
- Gross profit increased to SEK 29,846 m (25,049). This corresponds to a gross margin of 54.8 percent (53.9).
- The well-received collections led to costs for markdowns decreasing by around 1 percentage point in relation to sales.
- Operating profit increased to SEK 4,988 m (3,852), corresponding to an operating margin of 9.2 percent (8.3).
- Profit after financial items increased by 33 percent to SEK 4,782 m (3,593).
- The group’s profit after tax increased to SEK 3,682 m (2,767), corresponding to SEK 2.22 (1.67) per share.
- The board of directors has decided to buy back own B shares for SEK 3 billion starting from 29 June 2022.
- Sales in the month of June 2022 is expected to decrease by 6 percent 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 percent, while July and August increased by 6 percent.
- 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,” says Helena Helmersson, CEO.
Comments by Helena Helmersson, CEO
“Well-received collections have led to strong development, with a further increase in full-price sales and decrease in markdowns. Sales in physical stores increased substantially while online continues to do well. This once again shows the value of having both physical and digital channels which strengthen and complement each other. The integration of the sales channels is therefore ongoing, in parallel with continual initiatives – in particular within tech, the supply chain and sustainability.
Although most of the restrictions associated with the Covid-19 pandemic essentially seem to be over, many challenges remain. Disruption and delays still exist in the supply chain, but are gradually being eased. At the same time, there is substantial inflation. The situation associated with the war in Ukraine and its consequences for our business are continually being evaluated. We are actively looking at various options to find solutions that give consideration to customers and colleagues as well as the impact on the business as a whole.
To navigate in a rapidly changing world it is more important than ever to be flexible and able to take 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.”
Communication in conjunction with the six-month report
The six-month report, i.e., 1 December 2021 – 31 May 2022, will be published at 08:00 CEST on 29 June 2022, followed by a press conference at 09:30 CEST hosted by CEO Helena Helmersson, CFO Adam Karlsson and Head of IR Nils Vinge. The press conference for the financial market and media will be held in Swedish at H&M’s head office in Stockholm, Ljusgården, Mäster Samuelsgatan 49, 3rd floor. The presentation material will be available at hmgroup.com/investors.
A telephone conference for the financial market and media will be held in English at 14.00 CEST, hosted by CEO Helena Helmersson, CFO Adam Karlsson and Head of IR Nils Vinge. For log in details for the telephone conference please register at hmgroup.com or via this link:
https://event-registration.arkadin.com/62a1e6873d876e39fbc13347.
To book interviews in conjunction with the six-month report on 29 June 2022, please contact: Kristina Stenvinkel, telephone: +46 70 796 54 40, 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, 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 29 June 2022. 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. For further information, visit hmgroup.com.