For the first nine months, the H&M group’s net sales in local currencies increased by 13 percent compared with the corresponding period last year. Converted into SEK the group’s net sales amounted to 142,154 million Swedish krona.
For the third quarter the H&M group’s net sales in local currencies increased by 14 percent, while converted into SEK net sales increased to 55,585 million Swedish krona.
“The H&M group’s increase in profit for the quarter is mainly a result of well-received collections with more full-price sales, lower markdowns and good cost control. With our continued transformation and our well-positioned customer offering we are optimistic that we will see long-term, profitable and sustainable growth for the H&M group,” said Helena Helmersson, H&M CEO.
H&M improves profitability in Q3
Online sales increased by 22 percent in local currencies and 17 percent in SEK in the third quarter, while the company said store sales have started to recover as restrictions have been eased in many markets.
Gross profit for the quarter increased by 19 percent to 29,559 million Swedish krona corresponding to a gross margin of 53.2 percent. Profit after financial items increased by 158 percent to 6,093 million Swedish krona.
The operating margin was 11.3 percent, while profit after tax increased to 4,692 million Swedish krona, corresponding to 2.83 Swedish krona per share.
The company’s profit after financial items for the nine month period increased to 8,297 million Swedish krona and the group’s profit after tax amounted to 6,389 million Swedish krona, corresponding to 3.86 Swedish krona per share.
H&M proposes dividend payout
The company added that new autumn collections have been well received. Sales in September 2021 were slightly higher than in the corresponding month the previous year in local currencies, even though demand was not able to be fully met because of disruption and delays in product flow. Currently around 50 stores are temporarily closed.
H&M online will launch in Chile in autumn 2021 and in Peru, Colombia and Uruguay in the first half of 2022. Five new H&M markets will launch in 2022. Ecuador, North Macedonia and Kosovo, and via franchise in Costa Rica and Cambodia.
The company further said that the board of directors is proposing that a cash dividend of 6.50 Swedish krona per share is paid in November 2021 based on significantly improved profitability, a strong financial position with financial net cash of 24,874 million Swedish krona, more stable market conditions and a good outlook.