
Net sales H&M Group in 2024 financial year were 234 478 million Swedish kroner, and vale profit increased to 125 299 million Swedish kroner.
Results Fourth Quarter (1 September 2024 – 30 November 2024):
- Net Sales H&M Group in the fourth quarter were 62 193 million Swedish kroner (compared with 62 650 million in the fourth quarter of the previous year). In local currencies net sales increased by 3%.
- Gross profit increased to 33 33 942 million Swedish kroner (33 657). This corresponds to a value margin 54.6% (53.7).
- Commercial and administrative expenses were 29 303 million cr. Sweden kroner (29 314). In local currency these expenditures increased by 2%.
- Operating profit increased to 4,624 million Swedish kroner (4,332), which corresponds to operating margin 7.4% (6.9).
- Operating profit was written down to expenses for the liquidation of Monki brand stores, about 200 million Swedish kroner, and also to reserves for HIP of 236 million Swedish kroner (177).
- After tax result almost dropped to 3081 Mln Swedish Krone (1569), which equals 1.92 Swedish Krone (0.97) per share.
- Commodity stocks were 40348 million Swedish kroner (37358). Significant influence on commodity stock has higher longer transportation time, related to the situation in the Red Sea and the Black Friday, which occurred later than last year. The composition of commodity stocks is estimated as satisfactory.
- Cash flow from operating activities before changes in current capital increased by 16% to 9,870 million Swedish kroner (8418). Cash flow from operating activities before changes in current capital increased by 16% to 9,870 million Swedish kroner (8418).activities amounted to 6974 6974 million Swedish kroner (9207).
- Net sales H&M Group in 2024 financial year were 234 478 million Swedish kroner (236 035). In local currencies net sales increased by 1%.
- Gross profit increased by 4% to 125 299 million Swedish kroner (120 896). This corresponds to a gross margin of 53.4% (51.2).
- Commercial and administrative expenses were 107 915 million Swedish kroner (107 330). In local currency expenses increased by 1%.
- Operating profit increased to 17 306 million Swedish kroner (14 537), which corresponds to operating margin 7.4% (6.2).
- Operating profit increased by 28% compared with the previous year without accounting for the result of investments in associated companies and joint enterprises.
- The after tax result increased by 33% to 11,584 billion Swedish kroner (8 716), which equals 7.21 Swedish kroner (5.37) per share.
- Cash flow from operating activities to changes in current capital increased by 26% to 36 745 million Swedish Krone (29 106). Cash flow from operating activities was 31 756 Mn Swedish Krone (33 949).
- Cash Funds and their equivalents plus unused credit lines were 35 756 000 Swedish kroner (44 570).
- The increase in profit for the year means that 236 million Swedish kron (177) was allocated to the H&M Incentive (HIP), designated for all employees.
- Sales of H&M Group in the period from 1 December 2024 to 28 January 2025 increased by 4% in local currencies when compared with the same period in the same periodprevious year.
- According to preliminary data, emissions of vaporous gas H&M Group in the Sphere 3 decreased by the smallest measure by 23% in 2024 in the year compared with 2019 year.
- Capital investments by comparing with currency for 2025 year are planned at level 11-12 billion Swedish kroner. This corresponds to capital investments in 2024 year, which were 11.6 billion Swedish kroner. The investments are primarily directed on the portfolio of stores and the chain of supplies.
- The first H&M store H&M in Brazil will open in San Paulo at the end of 2025 year.
- The Board of Directors proposes to the annual general meeting in 2025 year to pay the ordinary dividend in the amount of 6.80 Swedish kroner per share (6.50) in two parts.
- The Board of Directors will also request the annual general meeting to request the general authorization to repurchase the own shares of Group Category B.
Full Year (1 December 2023 – 30 November 2024):
General Director H&M Group Daniel Erver explained: “Sales and operating profit increased in the fourth quarter thanks to high online sales, good acceptance of the womenswear collections and effective control over spending. Focusing on our core business and implementing our plan, we are on the path to long-term profitable growth.
After a year in the general directorship I am confident that we are on the right path. We have determined a clear direction, totally focused on our core business: improving that has the most value to the client, and eliminating that doesn’t carry that value. We are proud of the successes we have achieved in further improving ourproducts, improving the purchasing experience and building the brand. Although there is still much more to do, we have a strong plan to ensure the long-term growth that we are striving for.
In the fourth quarter sales grew by 3% in local currency compared with the last year. Our Fall Collection, presented by a series of events in the capitals of fashion, such as Milan, London and New York, which combined music, culture and fashion, was very well received. Gross margin and operating profit also increased, despite the expenditures of liquidation and increased investment in customer offering, marketing and optimization of stores. Higher online sales along with improved presentation of goods and more inspiring purchasing experience, good received womenswear collections and effective control of spending – all that contributed to positive development in this quarter. For the full year operating margin was 7.4%, and earnings per share increased by 34% to 7.21 Swedish kroner.
In 2024 year we made significant successes. Our priority was the commodity offering H&M, with an initial focus on womenswear, where we improved the consistency with trends and the general relevance of the assortment. In the fourth quarter sales of womenswear at full price increased across all channels.
We accelerated the pace of improvement of our supply chain, increasing flexibility and availability of goods across all channels. We opened 88 new stores and continued optimizing our portfolio of stores. With over 4200 stores, modernizing our portfolio of stores will remain our priority task. We reduce team structures to build a more efficient organization. To streamline and optimize our operations, we discontinued the Afound activities for a year. In 2025 year we plan to integrate the Monki brand Monki into Weekday, both in stores, and online. We want to utilize our size and scale, to push the fashion industry to a more sustainable future. Our goal is to reduce emissions of vaporous gas by 56% by 2030 year. Preliminary results show that our emissions from Sphere 3 have reduced, at least by 23% compared with the base level of 2019 year. By further integrating the issues of sustainable development into our businessplans and constant investment in the decarbonization of our supply chain we have all chances to achieve this long-term goal. In 2025 year we will continue to strengthen our core business and improve the quality of our client offering, while continuing to actively work on economic efficiency. We accelerate the processes of creating goods, increase the precision of aligning the offer with demand and improve the availability of goods to our customers online, and in stores, integrating both channels with each other. We are maintaining the level of investment compared with the last year and are first focused on theour stores and the chain supply chain. We will also improve our digital experience and continue to increase our brand presence in key fashionable cities. Although complex macroeconomic conditions and geopolitical uncertainty could affect consumer sentiment through 2025 year, we see some positive signs, such as reduced inflation and interest rates. Our diversified supply chain gives us the flexibility we need to mitigate the negative external impacts in different markets. This is along with our business–idea – fashion and quality at the best price with thinking about the environment – creates strong sustainability and positions usforgrowthintheworldmarketoffashion. Ingeneral,inourcorebusinessthere isbigpotential,withanaccentonorganicgrowth.Wehaveaclearplanforthenextyears,directedforprofitableandlong-termgrowth,supportingourgoaltofreefashionforeveryone.Thanks to thededicationandpassionofallourteam,wewillmakefurtherimportantstepsforwardin2025year.” Thefullreportofthecompany’sreportcan be foundat