Swedish fast fashion giant H&M Group has seen its H1 2022 net sales shoot up by 20 per cent to clock £ 8.4 billion.
The Group has attributed the growth to well-received collections and increase in full-price sales – in addition to decrease in markdowns.
The period saw the retailer’s gross profit surge to £ 4.36 billion, corresponding to a gross margin of 52.2 per cent.
The operating profit shot up to £ 400 million, for an operating margin of 5.3 per cent, which is a rise of 3.1 per cent from what it was during the same period a year earlier.
And it’s been the same story in second quarter as well!
The Q2 net sales rose by 17 per cent to £ 4.4 billion, with 12 per cent growth in local currencies. The same rose by 17 per cent in local currencies – excluding Russia, Belarus and Ukraine.
Sales in June is expected to fall by 6 per cent in local currencies compared with June 2021.
Substantiating further, Helena Helmersson, CEO, H&M Group, said “Sales in physical stores increased substantially while online continues to do well. This once again shows the value of having both physical and digital channels which strengthen and complement each other.”
The retail group, however, is closely evaluating the Russia-Ukraine war situation and its impact.
Founded in 1947, H&M is known for its fast-fashion apparels for men, women, teenagers and children. It generated US $ 24.8 billion in 2019.
