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HomeFashionH&M Group 'Confident' Despite Lackluster Results in Fiscal 2024

H&M Group ‘Confident’ Despite Lackluster Results in Fiscal 2024

LONDONH&M Group made modest gains in the fiscal fourth quarter, and financial year ended Nov. 30, in a difficult climate for spending and despite a big marketing push.

The Swedish fast-fashion giant saw fourth-quarter sales dip 1 percent to 62.19 billion Swedish kronor, or $5.66 billion, while in local currency terms, they rose 3 percent.

In the three months to Nov. 30, 2024, profit nearly doubled to 3.08 billion kronor, or $28 million, due chiefly to the restatement of deferred tax in the corresponding period last year.

The fourth quarter started well, according to H&M, with customers responding positively to the fall collections, but reporting was skewed by the timing of Black Friday, with the bulk of month-end sales reported in December, the start of H&M’s new fiscal year.

In the fourth quarter, sales in most of Europe grew in the low-single digits, with the exception of the Nordic countries. In the Asia Pacific, Oceania and Africa region, sales were down 2 percent. They fell 1 percent in North and South America.

In the full fiscal year ended Nov. 30, sales were down 1 percent to 234.48 billion kronor, or $21.33 billion, while in local currencies they increased by 1 percent, with around 30 percent of sales taking place online.

Profit after tax was 11.58 billion kronor, or $1.05 billion, 33 percent higher than the previous year, due to the restatement of deferred tax in the previous year.

The current year, which began on Dec. 1, is off to a stronger start. In the period running from Dec. 1 to Jan. 28, group sales rose 4 percent in local currencies compared with the corresponding period last year, according to H&M.

CEO Daniel Evrér, said the company was “on the right track” as it continues to streamline the business and improve “the products, shopping experience and brand building.”

He said the focus going forward will be on “speed and precision” in the supply chain, better alignment of supply and demand, and tighter integration of sales channels.

Evrér said that while the macroeconomic environment remains challenging, the company is looking forward to inflation and interest rates coming down. He said H&M was sticking to its commitment of delivering “fashion and quality at the best price, in a sustainable way.”

He reminded the markets that H&M’s goal is to slash greenhouse gas emissions by 56 percent by 2030, and said that Scope 3 emissions (from value chain assets not controlled by H&M) have dropped by at least 23 percent compared to the 2019  baseline figure.

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