Sweden’s H&M reports a growth of 12% in net sales during FY22
The year’s result has been affected by non-recurring costs of SEK 2,591 million for winding down the Russian operations and by a cost and efficiency program.
The gross margin in FY22 was 50.7 percent. Adjusted for non-recurring costs, the gross margin was 50.8 percent. The group’s profit after tax was SEK 3,566 million, corresponding to SEK 2.16 per share. Furthermore, cash flow from current operations amounted to SEK 24,476 million, H&M states in a press release.
Swedish multinational clothing company Hennes & Mauritz AB (H&M) has reported a 12 percent year-over-year increase in net sales to SEK 223,553 million (approximately USD 21,704.81 million) in the fiscal year 2022 (FY22), which ended November 30, 2022 The company’s operating profit was SEK 7,169 million, which corresponds to an operating margin of 3.2 percent in FY22.
For the fourth quarter (Q4) of FY22, net sales increased by 10 percent to SEK 62,433 million. In local currencies, net sales were unchanged. The gross profit amounted to SEK 31,011 million. This corresponds to a gross margin of 49.7 percent.
The company’s operating profit during Q4 FY22 was SEK 821 million, which corresponds to an operating margin of 1.3 percent. The lower result in the fourth quarter compared to the same quarter last year is mainly explained by negative external factors, loss of operating profit previously contributed by Russia, and the one-time cost of the cost and efficiency program.
“Sales in the new business year have started well. The external factors are still challenging but moving in the right direction. In combination with our investments and efficiencies, there are very good conditions for 2023 to be a year of increased sales and improved profitability. Therefore, our goal of achieving a double-digit operating margin for the full year 2024 remains, he says. Helena Helmersson, CEO.
Fibre2Fashion News Desk (DP)