Swedish clothing group H&M posted a 52% increase in net profit in the second quarter of its staggered financial year (March-May), to nearly 5 billion crowns (424.4 million francs) thanks to tight cost management, it announced on Thursday.
ATS
The group’s profitability “was strong thanks to the gradual improvement in sales development” and the pursuit of cost control, said the group’s general manager, Daniel Ervér, quoted in a press release.
Operating profit also increased in the second quarter to 7 billion crowns, however below the forecasts of analysts polled by Bloomberg (7.4) and Factset (7.5).
“The spring and summer collections were very well received, which is reflected in the improvement in sales in the second quarter,” added Mr. Ervér.
Quarterly turnover increased by 3% to 60 billion crowns but sales for the month of June are expected to fall by 6%, the group indicates in its report.
“The unstable weather in many of the H&M Group’s large markets at the start of June 2024 had a negative impact on sales, but sales recovered when the weather normalized at the end of the month,” says H&M .
H&M expects “a difficult situation in the world around us, where consumers continue to be affected by inflation and interest rates” for the year. It maintains its target of an operating margin of 10% for the full year.
afp
