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H&M Group sales up 12% despite turbulent economic backdrop

Chloe Burney
27 January 2023

H&M Group group sales were up 12% to £17.6 billion (SEK 223,553 million) in FY22 despite a turbulent economic backdrop.

In local currencies the revenue increase was 6% while it was 15% or 7% in local currencies when Russia, Belarus and Ukraine were excluded.

The 2022 fiscal year, from 1 December 2021 to 30 November 2022, was impacted by one-time costs of £2bn (SEK 2,591 million) due to the decision to wind down operations in Russia, as well as a cost and efficiency programme. Overall, the group's operating profit stood at £5.6bn (SEK 7,169 million).

Helena Helmersson, CEO, commented: “Having left the worst of the negative effects of the pandemic behind us, war broke out in Ukraine. We quickly decided to pause sales in the countries affected and later wind down our business in Russia and Belarus. Our decision to wind down the business in Russia, which was an important and profitable market, has had a significant negative impact on our results.”

For the important Christmas trading period, between 1 September 2022 and 30 November 2022, the retail giant reported net sales were up by 10% to £4.9bn (SEK 62,433 million).

Helmersson added: “Despite the tough situation in the world around us the H&M group stands strong, with a robust financial position, healthy cash flow and a well-balanced inventory... Sales in the new financial year have started well. The external factors are still challenging, but are moving in the right direction. Combined with our investments and efficiency improvements, there are very good prerequisites for 2023 to be a year of increased sales, and improved profitability. Thus, our goal of achieving a double-digit operating margin for full-year 2024 remains in place.

“Our highest priority is the H&M brand, where we are continuing to work on improving the assortment and the customer experience both in store and online while at the same time integrating the two channels further. Development of all our brands continues in parallel, alongside initiatives in areas such as sport, beauty and home. Via our investment arm CO:LAB we are creating value through a range of exciting and innovative partnerships and business models."

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