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H&M boss Daniel Ervér has said the Swedish retailer is “on track” as it revealed FY operating profits in the year to Nov 30 jumped 28% to SEK 17.3bn (£1.2bn).
It comes as quarterly sales were SEK 62.19bn (£4.53bn), up 3% in local currencies but lower than analysts predicted. H&M said that Q4 sales were affected by the later date of Black Friday which meant that a proportion of sales normally experienced during the period were moved to December.
As such it revealed that group sales in the period 1 December 2024 – 28 January 2025 increased by 4% in local currencies compared with the same period the previous year.
The group also opened 88 new stores and continued to optimise its store portfolio during the period with the group now operating over 4,200 stores.
Commenting on the results Ervér said: “ After one year as CEO, I’m confident that we are on the right track. We have set a clear direction focusing fully on our core business: improving what makes the biggest difference for the customer and removing what doesn’t. We are proud of the progress we have made to further strengthen our products, shopping experience, and brand building. While there is a lot left to do, we have a strong plan to drive the long-term growth we are aiming for.
“Sales grew by 3% in local currencies in the fourth quarter compared to last year. Our Autumn collection launched with a series of events in fashion capitals such as Milan, London and New York – bringing music, culture and fashion together – was very well received. Gross margin and operating profit also grew, despite wind-down costs and increased investments in the customer offering, marketing and store optimisation.”
He added: “Strong online sales together with improved product presentation and a more inspiring shopping experience, well received womenswear collections and effective cost control all contributed to a positive development in the quarter. For the full year the operating margin was 7.4%, and earnings per share rose by 34% to SEK 7.21.”
