High street fashion chain H&M has cheered its “best results for many years” in spring trading, but warned over a hit to sales in June from recent volatile weather.
The group reported a 3% rise in net sales to 59.6 billion Swedish krona (£4.5 billion) for its second quarter to the end of March, helping operating profits lift to 7.1 billion Swedish krona (£530 million) compared with 4.7 billion Swedish krona (£351 million) a year earlier.
Overall sales in the half-year lifted 1% – remaining flat in local currencies – and earnings rose 9% to 61.2 billion Swedish krona (£4.57 billion).
But the retail giant said it expects sales to drop by 6% in local currencies year-on-year in June as weather has dampened sales and as it comes up against strong trading from a year ago.
“The unstable weather in many of the H&M group’s large markets at the start of June 2024 had a negative impact on sales, but sales recovered as the weather normalised at the end of the month,” H&M said.
The results come after Daniel Erver took the reins as H&M chief executive at the end of January, replacing Helena Helmersson who left after four years in the role amid flagging profitability at the group.
Mr Erver said: “We achieved our best results for many years in the second quarter, showing once more the H&M group’s strength and robust financial position, with strong cash flow as well as improved profitability and sales.”
However, he added a cautionary note: “The situation in the world around us remains uncertain and households continue to have high living costs.
“As always, our top priority is to ensure the best value for money in each market.”
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