H&M Q2 Profit Rises, Sees Weak Sales In June; To Buy Back SEK 3 Bln Shares

Swedish retailer Hennes & Mauritz AB or H&M Group (HNNMY.PK,HMRZF.PK,HEN.L) reported Wednesday that its second-quarter profit after tax increased to 3.68 billion Swedish kronor from last year's 2.77 billion kronor. Earnings per share were 2.22 kronor, up from 1.67 kronor a year ago.

Operating profit was 4.99 billion kronor, corresponding to an operating margin of 9.2 percent, higher than prior year's 3.85 billion kronor or 8.3 percent margin.

Net sales increased 17 percent to 54.50 billion kronor from 46.51 billion kronor last year. In local currencies, the increase was 12 percent. Excluding Russia, Belarus and Ukraine sales increased by 17 percent in local currencies.

Helena Helmersson, CEO, said, "The H&M group's sales increase in the quarter is a result of well-received collections with increased full-price sales and lower markdowns. With a well-positioned customer offering, combined with physical and digital sales channels that strengthen each other, we are fully focused on meeting customers' ever-increasing expectations of affordable and sustainable fashion."

Further, the company said its board of directors has decided to buy back own B shares for 3 billion kronor starting from June 29.

Looking ahead, sales in the month of June 2022 is expected to decrease by 6 percent in local currencies compared with June 2021. The paused sales in Russia, Belarus and Ukraine represent 5 percentage points of the decrease. In June 2021, sales grew 24 percent, while July and August increased by 6 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Hospitality company Hilton has teamed with connected fitness platform Peloton Interactive, Inc. to feature Peloton Bikes across its entire U.S. hotel portfolio. In an industry-first partnership, Hilton's nearly all 5,400 U.S. Hilton-branded hotels will feature at least one Peloton Bike in every fitness center by the end of the year. Australia's central bank raised its benchmark rate by a smaller-than-expected quarter point on Tuesday, after lifting rates by 50 basis points in each of the last four meetings. The policy board of the RBA, headed by Governor Philip Lowe, decided to lift the cash rate target by 25 basis points to 2.60 percent from 2.35 percent. This was the highest rate since July 2013. Unemployment data from Spain and producer prices from the euro area are due on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, the National Institute of Statistics is scheduled to issue Romania's producer prices for August.
Follow RTT