First quarter net sales at H&M in local currencies increased by 18 percent, while converted into SEK, the group’s net sales increased by 23 percent to 49,166 million Swedish krona.
The group’s profit after tax increased to 217 million Swedish krona, corresponding to 0.13 Swedish krona per share.
Commenting on the trading update, Helena Helmersson, H&M CEO said in a release: “In addition to the general consequences of the pandemic such as disruptions and delays in the supply chain, some of our major markets were impacted by a new wave of the pandemic in the first quarter. Despite this we saw a recovery of sales in physical stores compared with last year, while online sales continued to perform well.”
Review of H&M’s Q1 and other highlights
The company’s gross profit increased to 24,260 million Swedish krona, corresponding to a gross margin of 49.3 percent. Operating profit increased to 458 million Swedish krona, corresponding to an operating margin of 0.9 percent. For rolling 12 months the operating margin was 8.1 percent.
Net sales in the period March 1 to March 28, 2022 increased by 6 percent in local currencies compared with the corresponding period last year. Excluding Russia, Belarus and Ukraine the increase was 11 percent.
The company said that the H&M group has paused all sales in Russia, Belarus and Ukraine. In total 185 stores as well as online sales in Russia are affected.
The company continues to expand into more markets. In March the first H&M store in Cambodia was opened via franchise. The company added that further new H&M markets in 2022 will be Ecuador, Kosovo and North Macedonia, and via franchise Costa Rica and Guatemala. In 2023 H&M plans to open its first store in Albania.
At the annual general meeting on May 4, 2022, the company further said, proposed dividend of 6.50 Swedish krona per share, to be paid in two instalments, and the authorisation to buy back shares for cancellation for a total amount of 3 billion Swedish krona, will be discussed.