FX.co ★ H&M Group Q2 Profit Climbs; Warns On June Sales

Hennes & Mauritz AB (H&M Group), the Swedish clothing giant, revealed on Thursday a notable rise in its second-quarter profit attributable to shareholders, reaching 5.01 billion Swedish kronor, up from 3.30 billion kronor in the previous year.

Earnings per share saw an uplift, climbing to 3.11 kronor from 2.02 kronor a year ago.

Operating profit also experienced a significant increase, hitting 7.10 billion kronor compared to last year's 4.74 billion kronor, which translates to an operating margin of 11.9 percent, up from 8.2 percent previously.

Adjusted operating profit stood at 7.20 billion kronor, reflecting an improved adjusted operating margin of 12.2 percent, compared to 8.1 percent in the prior year.

The H&M group's net sales rose by 3 percent in the second quarter, reaching 59.61 billion kronor from the previous year's figure of 57.62 billion kronor. When measured in local currencies, net sales also grew by 3 percent.

Looking forward, the company forecasts a 6 percent decline in sales for June 2024 in local currencies, compared to the strong comparative figures from the previous year.

The company noted that adverse weather conditions in many of H&M group's key markets at the start of June 2024 had negatively affected sales; however, a recovery was observed as the weather stabilized toward the end of the month.

CEO Daniel Erver expressed optimism, highlighting the company's favorable conditions for continued profitable, long-term, and sustainable growth.