(AOF) – Hennes & Mauritz (H&M) jumped 4.8% to 127.6 Swedish kronor, supported by better-than-expected results and the announcement of a three billion Swedish kronor share buyback program ( $295.4 million). In the second quarter to the end of May, profit jumped 33% to 3.68 billion crowns thanks to well-received collections and lower markdowns. Analysts polled by FactSet had expected 3.09 billion. The group manages to overcome inflation, the supply chain crisis, the war in Ukraine and the Chinese confinements.
Operating profit increased by more than 29% to 4.988 billion crowns, showing an operating margin of 9.2% against 8.3% a year earlier. Gross margin stood at 54.8% compared to 53.9% in the second quarter of 2021.
The turnover, already published, increased by 17% to 54.504 billion. In local currencies, the increase reached 12%. The consensus was for 52.8 billion.
Sales in physical stores have increased substantially, while online sales continue to do well,” Chief Executive Helena Helmersson said in a statement.
However, the group shows for the month of June a 6% drop in its local currency sales in a difficult comparison context. Discontinued sales in Russia, Belarus and Ukraine account for five percentage points of the June sales decline, the company said.
H&M continues to be penalized by disruptions and delays in its supply chain, but the situation is gradually improving.
AOF – LEARN MORE
Strengthening initiatives in sustainable development
Consumer concerns about the environmental impact of detergents and household cleaning products are growing. Henkel’s acquisition of Swania, more than 60% of whose sales come from the Maison Verte brand, is therefore highly strategic. Swania’s turnover stood at nearly 40 million euros in 2020. Since its creation in 1990, Maison Verte has been a pioneering brand in the maintenance segment with an ecological connotation. Swania also owns the You brand, positioned in the same niche. More recent, it is intended for younger consumers. As for Unilever, it has launched an ambitious new strategy: the Unilever Compass, which integrates sustainability at every stage, from design to production and distribution.