H&M turns to profit in second quarter as sales surge

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Hennes & Mauritz (H&M)
Hennes & Mauritz (H&M)

Swedish retailer Hennes & Mauritz AB or H&M Group (HNNMY.PK, HMRZF.PK, HEN.L) reported Thursday that its second-quarter profit after tax amounted to 2.77 billion Swedish kronor (314 million dollars), compared to last year’s loss of 4.99 billion kronor.

Earnings per share were 1.67 kronor, compared to loss of 3.02 kronor per share a year ago.

Net sales surged to 46.51 billion kronor from prior year’s 28.66 billion kronor. Net sales in local currencies increased 75 per cent.

At the start of the quarter, around 1,300 stores were temporarily closed and at the end around 140 stores remained closed. Online sales increased 32 per cent on a reported basis and by 40 per cent in local currencies.

Regarding the current trading, the company noted that net sales in the period from June 1 to 28 increased 25 per cent in local currencies.

Sales are still affected by reduced footfall as a result of continued restrictions and store closures. At present, around 95 stores are still temporarily closed.

Looking ahead, Helena Helmersson, CEO, said, “We are developing the existing business and are also creating new complementary revenue streams. Together with profitable online growth and continued store optimisation this will contribute to long-term, profitable and sustainable growth for the H&M group.”

In Sweden, H & M shares were trading at 200.35 kronor, down 1.31 per cent.

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