The H&M Group, a global fashion retailer, reported a decline in net sales for the third quarter of 2024. According to the company’s latest financial results, net sales reached 59,011 million Swedish krona ($5.7 billion USD), marking a drop in comparison to the previous year.
In local currencies, however, net sales remained flat. This comes at a time when the company is navigating external challenges that have impacted revenue growth.
Despite the dip, H&M remains optimistic about its performance in the coming months, with a strong autumn collection expected to drive a sales boost.
Financial Performance Overview
| Financial Metric | Amount (SEK) | Amount (USD) | Details |
|---|---|---|---|
| Net Sales (Q3 2024) | 59,011 million SEK | $5.7 billion USD | Flat in local currencies |
| Gross Profit (Q3 2024) | 30,133 million SEK | $2.9 billion USD | Gross margin of 51.1% |
| Operating Profit (Q3 2024) | 3,507 million SEK | $338 million USD | Operating margin of 5.9% |
| Result After Tax (Q3 2024) | 2,307 million SEK | $223 million USD | Earnings per share: 1.44 SEK ($0.14 USD) |
| Net Sales (First 9 months 2024) | 172,285 million SEK | $16.6 billion USD | Flat in local currencies |
| Gross Profit (First 9 months 2024) | 91,357 million SEK | $8.8 billion USD | Gross margin of 53% |
| Operating Profit (First 9 months) | 12,682 million SEK | $1.2 billion USD | Operating margin of 7.4% |
| Result After Tax (First 9 months) | 8,503 million SEK | $821 million USD | Earnings per share: 5.29 SEK ($0.51 USD) |
| Share Buyback (Sept 26 – Nov 26) | 1 billion SEK | $97 million USD | Share repurchase program |
“The quarter started with slow sales in June due to cold weather in many of our key European markets, However, by July and August, sales had picked up significantly, and September looks even stronger. We’re concluding the third quarter with sales similar to last year in local currencies, paired with effective cost control measures.”
Daniel Ervér, CEO of H&M
In conclusion, H&M Group’s third-quarter performance highlights a mixed bag of challenges and opportunities. While the company faced a slow start due to external pressures, it has shown resilience by adapting to market changes and maintaining flat sales in local currencies. However, the decline in gross profit and operating margins serves as a reminder that H&M will need to manage costs effectively as it navigates the complexities of the global retail environment.
