Net sales

H&M reports 23% growth in first-quarter net sales for FY22

The Swedish clothing company Hennes & Mauritz (H&M) has reported that its net sales increased by 23% to Skr49.16 billion ($5.2 billion) in the first quarter (Q1) of fiscal 2022 (FY22).

Expressed in local currencies, the company’s net sales increased by 18% compared to the corresponding period last year.

Between December 1 and February 28, H&M’s operating profit reached Skr 458 million, corresponding to an operating margin of 0.9%.

The retailer’s gross profit rose to Skr 24.2 billion, corresponding to a gross margin of 49.3%.

Additionally, its profit after tax in the quarter was Skr 217 million.

Helena Helmersson, CEO of H&M, said: “After ending last year with sales at the same level as before the pandemic and in a solid financial position, we started the new year with increased initiatives to create a even better for long-term growth.

“The initiatives are mainly to continue to develop the customer experience, for example by further expanding the assortment and integrating the sales channels, and by continuing to invest in infrastructure such as technology and supply chain, but also in renewable energy and sustainable materials.”

H&M said it has suspended all sales in Russia, Belarus and Ukraine due to the ongoing conflict in the region.

The move affected 185 of the company’s stores, as well as its online business in Russia.

Helmersson added: “We have closed our stores in Ukraine for the safety of our colleagues. Since early March, all sales have also been suspended in Russia and Belarus.

“The H&M Group cares about all our colleagues and stands with all those around the world who call for peace.”

Despite store closures, H&M’s net sales rose 6% in local currencies from March 1 to 28 compared to the same period last year.

Last month, the retailer continued its geographic expansion by opening the first H&M franchise store in Cambodia.