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Clothing & Shoes

H&M Q2 profits reaches £303m

The group’s net sales in local currencies increased by 75% to SEK 46.5bn (£2.9bn) from SEK 28.6bn (£2.4bn) in the corresponding period last year

H&M has reported pre-tax profits of SEK 3.59bn (£303m) from a previous year’s loss of SEK
6.4bn (£547m) for its second quarter ended 31 May 2021.

The group’s net sales in local currencies increased by 75% to SEK 46.5bn (£2.9bn) from SEK 28.6bn (£2.4bn) in the corresponding period last year.

Online sales have continued to develop “very well”, even as the stores have gradually been allowed to reopen, increasing by 40% in local currencies and by 32% in SEK in the second quarter.

Furthermore, net sales for the period 1 – 28 June 2021, increased by 25% in local currencies
compared with last year. However sales continue to be affected by reduced footfall as a result of continued restrictions and store closures.

At present, around 95 stores are still temporarily closed.

Helena Helmersson, CEO, H&M, said: “The third quarter has started well and we are almost back at the level we were at before the pandemic.

“Our long-term digital investments and increasingly integrated sales channels, along with more efficient ways of working and our customer focus, have been important during the pandemic. By being flexible and adapting quickly, all parts of the company have contributed to the recovery. At the same time, we can never sit back and relax.”

She added: “In the wake of the pandemic we are seeing increasing demand globally for fashion that provides value for money and is sustainable, which we are well positioned for. We are developing the existing business and are also creating new complementary revenue streams. “

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