The Swedish clothing group Hennes & Mauritz AB was able to increase its sales in the first quarter of the 2024/25 financial year. However, the growth was less than the analyst: in the way in advance. In March, the company’s sales in the local currencies are expected to increase by one percent compared to the same month.
On Thursday, the group announced that the negative overall effects of external factors in the second quarter are expected to be significantly lower than in the first. At the same time, cooperation with the suppliers is increasing, which brings further positive effects. “There are currently the prerequisites for a positive overall effect in the second half of the year compared to the previous year, while at the same time strengthening the offer for customers: inside,” said management.
Specifically, the net turnover of the H&M group, which was included in the A-list of the Carbon Disclosure Project due to its leadership role in terms of transparency and climate effects, rose by three percent to 55.3 billion Swedish crowns on February 28 (5.1 billion euros).
In the respective local currencies, net sales increased by two percent, with the number of branches reduced by around three percent compared to the previous year. The sales development in West, South and Eastern Europe was good, for which positive developments in Germany and Poland contributed in the course of the quarter.
“The sales rose by three percent in Swedish crowns in the first quarter, with the women’s collections well arrived. The operating result and profitability were affected by temporarily difficult development of the gross margin. Our most important priorities are the strengthening of the product range, a more stimulating shopping experience and a stronger brand. In this way we create the conditions for long -term, profitable and sustainable Growth, ”said CEO Daniel Ervér.
The gross profit was 27.2 billion Swedish crowns. The gross margin was 49.1 percent. “The gross margin was influenced in the past quarter by negative external factors, higher discounts and investments in the customer offer,” explains management in the message.
The operational profit, which had been 2.07 billion Swedish crowns in the same period in the previous year, dropped to 1.20 billion Swedish crowns, which corresponded to an operational margin of 2.2 percent. The decline in the operating result is due to the lower gross margin, the statement says.
Dividend of 6.80 Swedish crowns per share proposed
The result after taxes was 579 million Swedish crowns (53 million euros). In the previous year, it was at 1.23 billion Swedish crowns.
At the annual general meeting on May 7, 2025, among other things, the dividend of 6.80 Swedish crowns proposed by the Board of Directors is to be coordinated per share, which is to be paid out in two installments.
Outlook for the coming months
“We find that the improvements, especially in the range of women, begin to have a positive effect. Here we have simplified the organization and have become faster to adapt to new trends and create a more relevant range. In the course of the year we implement similar improvements for all of our customer groups,” said CEO Ervér.
The company also relies on the modernization of inpatient shops, which continues to be a top priority. “In addition to the redesign of key branches in some major cities, we will expand the improved customer experience to other stores in other markets during the year,” the statement said.
The retail chain plans to improve the offer for the customer: inside with renewed products, a more stimulating shopping experience and a stronger brand. “This creates the prerequisites for long -term, profitable and sustainable growth, whereby the H&M brand and organic growth are in the foreground,” concluded the CEO.
This article was used with digital tools translated.
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