2024-03-27 14:11:12
The Swedish textile chain Hennes & Mauritz (H&M) got a attributable net profit of $1,209 million crowns (€105 million euros) between December 2023 and February 2024, first fiscal quarter for the company.
This supposes a 123% increase regarding the result of $541 million crowns (€47 million) recorded in the same period of the previous yearreported the multinational.
H&M boosts its profits
In the first three months of its fiscal year, the Swedish fashion chain achieved a 51.5% gross margincompared to 47.2% in the same period of the previous year, while the operative result reached $2,077 million crowns (€181 million), 186% more, with an operating margin of 3.9%, triple that of a year before.
The Scandinavian firm’s net sales amounted to $53,669 million crowns (€4,681 million) in the quarter, 2.2% below the previous year’s revenue.
“Development continued in the right direction in the first quarter with improved gross margin and operating profit, lower inventory and strong cash flow,” stated Daniel Ervér, CEO of the multinational.
Dividend distribution
The company will propose at the general meeting of shareholders H&Mwhich will be held on May 3, the distribution of a dividend of $6.50 crowns per share, as well as an authorization that allows the board to repurchase the group’s own shares during the period until the general meeting in 2025.
At the end of the quarter, H&M had a total of 4,338 stores worldwide, which represents a reduction of 76 points of sale compared to the same quarter of the previous year. Compared to the first quarter of its fiscal year 2020, the Swedish chain has reduced the number of stores by 715.
In this sense, H&M’s top executive noted that the updating of the group’s stores is accelerating, including the renovation of around 250 stores around the world throughout 2024, including New York, London, Berlin and Stockholm.
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