H&M has reported a 23 per cent rise in third-quarter operating profit to £461m (SEK 6.0bn) boosted by lower costs and improved purchasing.
In the three months ending 31 August, the fashion retailer experienced net sales inch up to £4.36bn (SEK 57.2bn), with sales in local currencies up 1 per cent.
For the first nine months, group sales fell to £12.34bn (SEK 161.6bn) from £12.91bn (SEK 169.1bn), although sales in local currencies were in line with the previous year.
Gross profit rose to £2.36bn (SEK 30.9bn), taking the gross margin to 54 per cent, compared with 52.9 per cent a year earlier, with the high street brand adding that margins benefited from one-off effects worth around 1.6 percentage points relating to tariffs and goods imports that had increased costs in previous quarters.
CEO Daniel Ervér said the group’s work on purchasing, cost control and more efficient operations had “contributed to a more profitable business”.
“As we move into autumn, the composition of the stock-in trade is good and we are well placed to meet our customers’ needs,” said Ervér.
“At a time when consumers are affected by high living costs, we are gradually strengthening our customer offering through attractive and inspiring products, shopping experiences and brands.
“Initiatives in the supply chain, greater support from AI and committed employees allow us to increase relevance and precision throughout the business – which will help deliver even greater value for our customers.”
H&M’s founding family has continued to build its stake in the fashion giant, fuelling speculation it could ultimately take the company private as its turnaround struggles.
The Persson family’s investment vehicle Ramsbury Invest has snapped up 36.8m H&M shares so far this year, according to regulatory filings.
The family and related entities owned more than 68 per cent of the company’s shares at the end of August, up sharply from 49.5 per cent at the beginning of 2021.
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