For the first nine months, H&M Group net sales in local currencies increased 13% compared to the corresponding period last year. Converted to SEK, the group’s net sales amounted to SEK 142.154 million.
For the third quarter, H&M group net sales in local currencies increased by 14%, while net sales converted to SEK increased to SEK 55,585 million.
“The increase in H&M group profit for the quarter is mainly the 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 about long-term, profitable and sustainable growth for the H&M Group, ”said Helena Helmersson, CEO of H&M.
H&M improves profitability in the third quarter
Online sales rose 22% in local currencies and 17% in SEK in the third quarter, as the company said in-store sales started to recover thanks to the easing of restrictions in many markets.
Gross profit for the quarter increased 19 percent to SEK 29,559 million, corresponding to a gross margin of 53.2 percent. Profit after financial items increased 158% to SEK 6,093 million.
Operating margin was 11.3 percent, while profit after tax increased to SEK 4,692 million, corresponding to SEK 2.83 per share.
The company’s profit after financial items for the nine-month period increased to SEK 8,297 million and the group’s profit after tax amounted to SEK 6,389 million, corresponding to SEK 3.86 per action.
H&M proposes the payment of a dividend
The company added that the new fall collections were well received. Sales for September 2021 were slightly higher than the corresponding month of the previous year in local currencies, although demand could not be fully met due to disruptions and delays in the flow of products. Currently, around fifty stores are temporarily closed.
H&M online will be launched in Chile in fall 2021 and in Peru, Colombia and Uruguay in the first half of 2022. Five new H&M markets will be launched in 2022. Ecuador, North Macedonia and Kosovo, and through franchises in Costa Rica and Cambodia.
The company further stated that the board of directors is proposing a cash dividend of SEK 6.50 per share to be paid in November 2021 on the basis of significantly improved profitability, strong financial position with a net cash of SEK 24,874 million, more stable market conditions. and good prospects.