H&M Group net sales rise in Q2

H&M Group has released a trading update for the second quarter ending 31 May 2022, revealing a 12% increase in net sales.

H&M Group's net sales increased by 17% to £4.4 billion (SEK 54,504 million). The group did not expand on the results, with a detailed six-month report to be published on 29 June 2022.

Looking back at the first quarter of 2022, H&M Group reported net sales were up by 23% to £4 million. The group, which owns brands including Monki, Cos and Arket, also saw net sales increase by 6% to £15.8 billion for the year 1 December 2020 to 31 November 2021.

Harry Barnick, Senior Analyst at Third Bridge, said: "Net sales grew just 12% in Q2 with the headwinds of rising inflation, covid restrictions in China and the threat of a global recession. In the current inflationary environment, H&M can push up prices in certain ranges. That being said, increasing prices in the core fashion ranges will be a challenge.

“H&M could claw back market share in the event of further inflation and cost-of-living increase as customers trade down from higher-priced brands such as Zara. Additional market share could be won from smaller and local brands unable to deal with rising costs.”

The Q2 update follows the recent news of H&M Group and Lululemon's £200 million investment to support the Fashion Climate Fund, which aims to accelerate solutions to decarbonise the fashion industry.