H&M Group sales soar despite UK struggles

16th September 2019

Georgia Wright

H&M group reported a 12 per cent increase in net sales year on year in the three months to 31 August, despite a 74 per cent drop in annual profits in its UK arm.

Fashion

// Despite profits dropping by 74% at its UK arm, H&M Group reported a rise in net sales

// The retail empire credited its summer collections & increase in market sales for its success

H&M Group has revealed an uptick in overall sales in its third quarter, shortly after accounts revealed nosediving profits in its UK arm.

The Swedish fashion giant, which runs the eponymous retailer along with Arket, Weekday, Cos, Monki, and & Other stories, reported a 12 per cent increase in net sales year-on-year in the three months to August 31.

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The increase saw quarterly net sales come to 62.57 billion kroner (£52.23 billion).

This marks H&M Group’s steepest sales growth in the past three years.

“Well-received summer collections and increased market share confirm that the H&M Group is on the right track with its transformation work,” the company said in a statement.

The news comes after H&M revealed a massive drop in profits in its UK arm in accounts filed at Companies House earlier this month.

H&M reported that UK operating profit for financial year ending November 30, 2018 had plummeted from £38.71 million down to £12.21 million, or a 68.4 per cent year-on-year decline.

H&M’s UK division also saw a 71.2 per cent crash in full-year pre-tax profits to £10.72 million.

H&M Group will release its full-year results on October 3.

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