Swedish apparel retailer H&M has released its full-year report for the 2023 financial year, i.e., 1st December 2022 – 30th November 2023.
In the fiscal year 2023, the H&M group’s net sales in SEK climbed by 6 per cent to SEK 236,035 million. With Belarus and Russia excluded, the gain was 1 per cent in local currency and 8 per cent in SEK.
Portfolio brands saw a 15 per cent increase in sales in SEK and a 9 per cent increase in sales in local currencies during the fiscal year. The gross profit of SEK 120,896 million increased by 7 per cent. This translates to a 51.2 percent (50.7 per cent) gross margin.
Operating profit climbed to SEK 14,537 million including allocation to the H&M Incentive programme (HIP), meaning that operating margin was 6.2 percent. Operating profit, without allocation to HIP, was SEK 14,714 m. This translates to a 6.2 percent operational margin.
After taxes, the outcome was SEK 8,723 million, a 145 percent increase. The operating cash flow amounted to SEK 33,949 million, a 37 per cent increase.
The total amount of financial net cash was 10,929. There were SEK 44,570 million in cash and cash equivalents as well as undrawn credit facilities.
Because of the year-over-year profit growth, SEK 177 million has been set aside for HIP, which benefits all employees. Compared to the same period the previous year, the H&M group’s sales fell by 4 per cent in local currencies between 1st December 2023, and 29th January 2024. For 2024, capital expenditures in equivalent currency are expected to reach SEK 11–12 billion, which would represent a rise of up to about 30 per cent over 2023.
“Operating profit has been positively impacted by a stronger gross margin, the cost and efficiency programme, and good cost control. The H&M group is taking important steps towards the company’s ambitious climate goals. Preliminary results indicate that greenhouse gas emissions decreased by more than 20 percent in 2023 compared with the 2019 baseline,” says Helena Helmersson, outgoing CEO.
