H&M Group sales rise as summer collections boost growth

H&M Group has reported a 9% increase in net sales to £822m (SEK 112.5bn) for the six months to 31 May 2023 as summer collections continue to fuel growth. 

The owner of H&M, Cos and Arket saw gross profit increase to £411 million (SEK 56,106 million), whilst gross margin grew to 50%. Operating profit remained flat year on year at £396m (SEK 5.4bn) giving a margin of 4.9%, down from 5.3%.

Helena Helmersson, CEO at H&M Group, said: “We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year.

"With a robust financial position, stable cash flow and a well-balanced inventory, the H&M group stands strong. Our long-term goals remain in place. Already next year the operating margin is to reach 10 percent.”

For the period of 1 to 27 June 2023, H&M's sales increased 10% in local currencies compared with the same period last year.

Helmersson added: “We are taking important steps towards our goals. The summer collections have been well received and the third quarter has got off to a good start. The conditions for increased growth as well as profitability continue to develop in a favourable direction."

The group also announced that its 2023 annual general meeting authorised the board to start a share buyback programme for a maximum amount of (SEK3 billion) in the period up to the 2024 annual general meeting.