H&M sales rise as it focuses on driving profitable growth and sustainability

H&M Group has published its financial results for the three months ending 29 February 2024, revealing that the company's net sales amounted to £4 billion (SEK 53.699 billion).

The group’s sales in the period 1-25 March 2024 increased by 2% in local currencies, compared with the same period in the previous year.

Operating profit totalled £149 million (SEK 2 billion), corresponding to an operating margin of 3.9%.

H&M said it is "fully focused on driving profitable growth going forward". It aims to do this by refurbishing around 250 stores globally in 2024, including those in London, New York, Berlin and Stockholm.

It is also continuing to simplify the organisation to make it more efficient and faster. Other examples of ongoing improvements include increased near-shoring and enhanced efforts in digitalisation and AI, "allowing customers to access the most relevant fashion".

Daniel Ervér, CEO of H&M, said: "Development continued in the right direction in the first quarter with an improved gross margin and operating profit, lower inventory and strong cash flow. Our top priority is to continue improving the customer offering, the store experience and the supply chain in order to increase sales."

H&M group also published its annual sustainability report, which details its progress in areas including increased use of sustainable materials and reduced climate impact.

To achieve its ambitious climate goals, the company is investing in projects such as the recently launched Syre, which aims to rapidly scale a circular model for polyester recycling.

The report shows a 22% reduction in greenhouse gas emissions in 2023. In relation to sales in SEK, the decrease was 23%.

Other key highlights include:

• 22% reduction of greenhouse gas emissions in H&M Group’s supply chain and 24% reduction of greenhouse gas emissions in its operations.
• 85% recycled or sustainably sourced materials,  making progress towards its goal of 100% by 2030.
• 29% reduction in electricity intensity.
• 55% plastic packaging reduction (from 2018 baseline).