- Fashion
H&M/ Profit of SEK 579 million in the first quarter of 2025 (down from 1,231), revenues +3% to SEK 55,333 million
Significant decrease in profit for Hennes & Mauritz in the first quarter of the year (1 December 2024 – 28 February 2025): SEK 579 million, compared to SEK 1,231 million in the same period last year. The H&M group's net sales in the first quarter increased by 3% to SEK 55,333 million (53,669). In local currencies, net sales rose by 2%, with around 3% fewer stores than the previous year. Gross profit amounted to SEK 27,169 million (27,655), corresponding to a gross margin of 49.1% (51.5). The gross margin for the quarter was affected by unfavourable external factors, increased markdowns, and investments in the customer offering. "The Swedish krona strengthened in the first quarter, which resulted in currency remeasurement effects negatively impacting the gross margin compared to the previous year," the group stated in a note. Selling and administrative expenses amounted to SEK 25,938 million (25,564). In local currencies, these expenses remained in line with the previous year. Operating profit amounted to SEK 1,203 million (2,077), corresponding to an operating margin of 2.2% (3.9). The result after tax amounted to SEK 579 million (1,231). Stock-in-trade amounted to SEK 41,008 million (37,630), a 9% increase. Currency-adjusted stock-in-trade rose by 11% compared to the previous year. Cash flow from operating activities increased to SEK 4,201 million (3,967). Cash and cash equivalents plus undrawn credit facilities totaled SEK 34,470 million (38,710). The H&M group's sales in March 2025 are expected to increase by 1% in local currencies compared to the March 2025. Today, the H&M group publishes its 2024 annual sustainability report. Among other things, the report shows that greenhouse gas emissions in scope 32 decreased by approximately 24% in 2024 compared to the 2019 baseline. The annual general meeting will be held on 7 May 2025 to resolve, among other things, the board's proposed dividend of SEK 6.80 per share, to be paid in two instalments, and on a general authorization allowing the board to buy back the group's own B shares in the period leading up to the 2026 annual general meeting.
"We have a stable financial position that gives us the flexibility to prioritise what creates the most value for our customers. With macroeconomic and geopolitical uncertainty, it is important that we continue to focus fully on our plan and offer the best combination of fashion, quality, price and sustainability for everyone. We are therefore further
strengthening our customer offering through an upgraded product offering, a more inspiring shopping experience and a stronger brand. This creates the conditions for long-term profitable and sustainable growth, with the H&M brand and organic growth in focus" Daniel Ervér, CEO, commented. (Crredit photo H&M)