H&M finished the first quarter significantly better than expected – Kommersant
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Shares of Swedish clothing and footwear retailer H&M jumped 14% in early trading after the company published financial report for the first quarter of fiscal year 2024 (ended November 30 last year).
The quarterly results were significantly higher than analysts’ expectations. Thus, the retailer’s operating profit amounted to SEK 2.08 billion ($196 million) versus SEK 725 million a year earlier. Analysts surveyed by LSEG on average expected a profit of 1.43 billion crowns. Operating margin increased from 1.3% to 3.9%, and net profit from 540 million to 1.2 billion crowns.
The company’s sales decreased slightly compared to the beginning of 2023 – from 54.9 billion to 53.7 billion crowns, or by 2%. However, analysts expected the drop in revenue to be more significant. In addition, H&M CEO Daniel Erver said during the presentation of financial results that the spring collection is in high demand among consumers, and sales at the start of the second quarter of the fiscal year are growing by 2% year on year.
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