The H&M group’s net sales in the third quarter decreased to 59,011 million Swedish krona, while in local currencies net sales were flat compared with the previous year.

The company said that the autumn collection has been very well received and sales in the month of September 2024 are expected to increase by 11 percent in local currencies compared with the same month the previous year.

“The quarter started with slow sales in June due to cold weather in many of our key European markets. In July and August we saw sales pick up, with even stronger sales development in September. Despite a challenging start, we are concluding the third quarter with sales on par with last year in local currencies and with good cost control,” said Daniel Ervér, H&M CEO in a statement.

H&M posts decline in Q3 results

Gross profit for the quarter dropped to 30,133 million Swedish krona, corresponding to a gross margin of 51.1 percent. Operating profit declined to 3,507 million Swedish krona, corresponding to an operating margin of 5.9 percent.

The result after tax reached 2,307 million Swedish krona, corresponding to 1.44 Swedish krona per share.

"External factors have impacted our sales revenue and purchasing costs more than we expected. At present we estimate that this year's operating margin will be lower than 10 percent," added Ervér.

Highlights of H&M’s nine month trading performance

For the nine months, the company’s net sales decreased to 172,285 million Swedish krona and in local currencies, net sales remained flat compared with the previous year.

Gross profit increased to 91,357 million Swedish krona, corresponding to a gross margin of 53 percent. Operating profit increased to 12,682 million Swedish krona, corresponding to an operating margin of 7.4 percent.

The result after tax increased by 19 percent to 8,503 million Swedish krona, corresponding to 5.29 Swedish krona per share.

The first flagship store for H&M Beauty in Sweden was opened in September and during the autumn, H&M is opening digital stores on Douyin and Pinduoduo, two of China’s biggest e-commerce platforms. Additionally, the first H&M store in Brazil will open in São Paulo at the end of 2025.

Based on the authorisation granted by the annual general meeting the company’s board of directors has decided to buy back H&M class B shares for 1 billion Swedish krona, starting on September 26, 2024 and continuing until November 26, 2024.