High street fashion chain H&M has cheered its “best results for many years” in spring trading, but warned over a hit to sales in June from recent volatile weather. The group reported a 3% rise in net sales to 59.6 billion Swedish krona (£4.
5 billion) for its second quarter to the end of March, helping operating profits lift to 7.1 billion Swedish krona (£530 million) compared with 4.7 billion Swedish krona (£351 million) a year earlier.
Overall sales in the half-year lifted 1% – remaining flat in local currencies – and earnings rose 9% to 61.2 billion Swedish krona (£4.57 billion).
But the retail giant said it expects sales to drop by 6% in local currencies year-on-year in June as weather has dampened sales and as it comes up against strong trading from a year ago. “The unstable weather in many of the H&M group’s large markets at the start of June 2024 had a negative impact on sales, but sales recovered as the weather normalised at the end of the month,” H&M said. The results come after Daniel Erver took the reins as H&M chief executive at the end of January, replacing Helena Helmersson who left after four years in the role amid flagging profitability at the group.
Mr Erver said: “We achieved our best results for many years in the second quarter, showing once more the H&M group’s strength and robust financial position, with strong cash flow as well as improved profitability and sales.” However, he added a cautionary note: “The situation in the world .
