Hennes & Mauritz AB (H&M) group’s net sales increased by 3 percent in the second quarter to 59,605 million Swedish krona. In local currencies net sales also increased by 3 percent.

Sales for the month of June are expected to decrease by 6 percent in local currencies with unstable weather in many of the H&M group’s large markets at the start of the month negatively impacting sales.

“We achieved our best results for many years in the second quarter, showing once more the H&M group’s strength and robust financial position, with strong cash flow as well as improved profitability and sales,” said Daniel Ervér, H&M Group CEO in a statement.

H&M posts increase in Q2 profit

Gross profit for the quarter increased by 11 percent to 33,569 million Swedish krona corresponding to a gross margin of 56.3 percent.

Operating profit increased to 7,098 million Swedish krona, corresponding to an operating margin of 11.9 percent.

Second quarter operating profit rose to 7,297 million Swedish krona, corresponding to an operating margin of 12.2 percent and the result after tax increased by 52 percent to 4,995 million Swedish krona, corresponding to 3.11 Swedish krona per share.

H&M’s H1 net sales up 1 percent

“The H&M group’s profitability performance during the first half of the year was strong as a result of gradual improvements in sales development, a strengthened gross margin and continued good cost control,” added Ervér.

For the six month period, H&M group’s net sales increased by 1 percent to 113,274 million Swedish krona, while in local currencies, net sales were in line with the previous year.

Gross profit for the period increased to 61,224 million Swedish krona, corresponding to a gross margin of 54 percent.

Operating profit increased to 9,175 million Swedish krona, corresponding to an operating margin of 8.1 percent.

The result after tax for the first half of the fiscal year increased to 6,196 million Swedish krona, corresponding to 3.85 Swedish krona per share.

Commenting on the outlook, Ervér further said: “With a sharp increase in profit for four consecutive quarters, we are well on the way to achieving our long-term goal of profitability exceeding 10 percent over time. Our goal of an operating margin of 10 percent for full-year 2024 remains in place.”