H&M Group Reports Strong Q2 Performance With 52% Increase In Profit

The H&M Group has reported a robust performance in the second quarter of 2024, with net sales increasing by 3% to SEK 59,605 million and gross profit rising by 11% to SEK 33,569 million. The company’s gross margin improved to 56.3% from 52.7% in the same period last year. Operating profit surged to SEK 7,098 million, corresponding to an operating margin of 11.9%. After accounting for one-time costs, operating profit stood at SEK 7,297 million, reflecting a margin of 12.2%.

Net profit after tax soared by 52% to SEK 4,995 million, equivalent to SEK 3.11 per share. The company also reported a significant improvement in cash flow from operating activities, which increased to SEK 12,600 million.

For the first half of the fiscal year, net sales rose slightly by 1% to SEK 113,274 million. Gross profit for the half-year period increased to SEK 61,224 million, with a gross margin of 54.0%. Operating profit for the first half stood at SEK 9,175 million, with a margin of 8.1%. Net profit after tax reached SEK 6,196 million, or SEK 3.85 per share. The group’s financial net cash position increased to SEK 7,961 million, with cash and cash equivalents plus undrawn credit facilities totaling SEK 42,572 million.

Despite an expected 6% decrease in June sales due to strong comparative figures from 2023 and unstable weather conditions, H&M remains optimistic about the future. The company was recognized by environmental organization Stand.earth for its climate work, achieving the highest overall score among leading fashion brands.

At the annual general meeting held on 3 May 2024, the board was authorized to repurchase the company’s B shares until the 2025 AGM. CEO Daniel Ervér highlighted the company’s strong financial position and the positive reception of its spring and summer collections, emphasizing plans for further investments to enhance the brand and customer experience.

“We achieved our best results in many years, showing H&M Group’s strength and robust financial position. With a focus on our customers and a faster pace of investment, we see good conditions for continued profitable, long-term and sustainable growth,” said Ervér.