Operating profit decreased by 22% to 7.117 billion Swedish crowns (643 million euros), influenced by a reduced gross margin, the dollar’s appreciation, higher transport costs, and investments in customer offerings, according to the financial report.
Sales reached 112.047 billion crowns (10.129 billion euros), marking a 1% increase when calculated in local currency and a 1% decrease in Swedish crowns.
The major competitor of the Spanish retail company Inditex recorded a net profit of 3.962 billion Swedish crowns (358 million euros) in the second quarter (March-May), a decline of 22%.
During that period, net sales amounted to 56.714 billion crowns (5.127 billion euros), down by 5%.
Operating profit was 5.914 billion crowns (535 million euros), a decline of 17%.
“In uncertain times with cautious consumers, we closely monitor macroeconomic and geopolitical developments and continuously adapt our offerings and operations to best meet customer needs,” stated the company’s CEO, Daniel Ervér, in a statement.
Ervér emphasized that H&M has strong opportunities for sustainable and profitable long-term growth due to its solid financial position, clear plan, and effective cost control.
H&M had 4,166 stores open as of May 31, 4% fewer than a year earlier.
The Swedish company expects to open its first stores and begin ‘online’ sales in Brazil at the start of the second half of its fiscal year.
