Press release

H & M Hennes & Mauritz AB Six-month report

29 June, 2023

First half-year (1 December 2022 – 31 May 2023)

• The H&M group’s net sales in SEK increased by 9 percent in the first half-year to SEK 112,488 m (103,670). In local currencies net sales increased by 1 percent.
• The gross profit increased to SEK 56,224 m (54,106). This corresponds to a gross margin of 50.0 percent (52.2).
• Operating profit amounted to SEK 5,466 m (5,446), corresponding to an operating margin of 4.9 percent (5.3).
• The result for the first half was negatively impacted by high raw materials and freight costs, a strong US dollar, increased energy costs and the effects of winding down the operations in Russia.
• The result after tax was SEK 3,828 m (3,899), corresponding to SEK 2.35 (2.36) per share.
• Cash flow from operating activities amounted to SEK 12,485 m (12,591).
• Financial net cash amounted to SEK 7,700 m (16,313). Cash and cash equivalents plus undrawn credit facilities was SEK 38,813 m (44,483).

Second quarter (1 March 2023 – 31 May 2023)

• Net sales increased by 6 percent to SEK 57,616 m (54,504) in the second quarter. In local currencies, net sales were flattish compared with last year.
• Gross profit increased to SEK 30,338 m (29,846). This corresponds to a gross margin of 52.7 percent (54.8).
• Selling and administrative expenses increased by 3 percent to SEK 25,585 m (24,858). In local currencies, these expenses decreased by 2 percent.
• Operating profit was SEK 4,741 m (4,988). This corresponds to a gross margin of 8.2 percent (9.2).
• High raw materials and freight costs and a strong US dollar had a negative impact on the result compared with the previous year.
• The result after tax was SEK 3,288 m (3,682), corresponding to SEK 2.02 (2.22) per share.
• Sales for Portfolio Brands in the second quarter increased by 17 percent in SEK and by 12 percent in local currencies.
• Stock-in-trade decreased by 20 percent currency-adjusted compared with the previous year.
   
• Sales for the H&M group during the period 1 -27 June 2023 increased by 10 percent in local currencies compared with the same period last year.
• The 2023 annual general meeting authorised the board to start a share buyback programme for a maximum amount of SEK 3 billion in the period up to the 2024 annual general meeting. The board intends to provide further information in conjunction with the nine-month report published on 27 September 2023.

 
“We are taking important steps towards our goals. The summer collections have been well received and the third quarter has got off to a good start. The conditions for increased growth as well as profitability continue to develop in a favourable direction”, says Helena Helmersson, CEO. 

Comments by Helena Helmersson, CEO

With the second quarter behind us we can conclude that we have taken a number of further important steps towards our goals. We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year. The summer collections have been well received and the third quarter has got off to a good start. The conditions for increased growth as well as profitability continue to develop in a favourable direction.
 
The external factors that affect our purchasing costs continue to improve, work on the cost and efficiency programme is proceeding at full speed, and much of the work that we have done in recent years is starting to bear fruit. We are also continuing our initiatives focusing on the customer offering, while at the same time we want to give our customers an even better experience with more inspiration and flexibility in our physical stores and digital channels.
 
With a robust financial position, stable cash flow and a well-balanced inventory, the H&M group stands strong. Our long-term goals remain in place. Already next year the operating margin is to reach 10 percent. 

Communication in conjunction with the six-month report

The six-month report, i.e., 1 December 2022 – 31 May 2023, will be published at 08:00 CEST on 29 June 2023, 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.
 
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://app.webinar.net/qQl7epbKwaX
 
To book interviews in conjunction with the six-month report on 29 June 2023, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.

Contact

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 

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 2023. This interim report and other information about the H&M group are 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, ARKET and Afound  as well as Sellpy. For further information, visit hmgroup.com.