The Swedish fashion chain H&M (Hennes and Mauritz) today presented a net profit of 1,201 million crowns (105 million euros) in the first quarter of its fiscal year (December-February), which represents 122% more year-on-year . . The effects of the cost and efficiency program, good operational control and a solid gross margin have had a positive effect on the balance sheet, the company has noted.
Net operating profit (ebit) was 2,077 million Swedish crowns (181 million euros), almost three times more. Net sales amounted to 53,669 million (4,682 million euros), which represents a year-on-year decrease of 2%, both in local currencies and in Swedish crowns.
Inventory was reduced by 7% compared to last year and is equivalent to 16% of sales in the last twelve months, almost two points less. “Investments in the supply chain and the integration of sales channels continue. With a higher share of outsourcing, a more efficient and flexible chain and more seasonal purchases the group is well placed for continuous improvement of the market situation. inventory”, appears on the balance sheet.
Inditesx’s competitor
On February 29, H&M had 4,338 stores open, 2% less than a year ago. The main competitor of the Spanish distribution firm Inditex has opened 16 establishments so far in 2024 and has closed 47.
“Through continuous cost control, more precision in our collections and close cooperation with our suppliers we are now better equipped,” said H&M CEO Daniel Ervér, who took over the role a few months ago from Helen to Helmersson. .
