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H&M has reported a 9% net sales increase to SEK 112.4m (£8.2m) in the first half of the year.
Sales in the physical stores increased in the six-month period despite there being around 300 fewer stores than in the previous year. Around 30 percent of sales were online.
Throughout the month of June, sales increased by 10% in local currencies compared to the same period last year.
The group’s gross profit increased to SEK 56.2m (£4.1m), corresponding to a gross margin of 50%. Operating profit in the second quarter amounted to SEK 4.7m (£344k), which the group said was negatively impacted as a result of increased raw materials and freight costs combined with a stronger US dollar compared with last year.
During the period the total number of stores has decreased by 303 compared with the same point in time last year, mainly due to the closure of 175 stores in Russia and Belarus in 2022. During the current financial year 41 new stores have opened and 107 stores were closed.
Helena Helmersson, CEO, said: “With the second quarter behind us we can conclude that we have taken a number of further important steps towards our goals. We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year.
“With a robust financial position, stable cash flow and a well-balanced inventory, the H&M group stands strong. Our long-term goals remain in place. Already next year the operating margin is to reach 10%.”
