H&M Group, which has a portfolio made up of H&M, & Different Tales, Monki, Weekday and extra, has right now revealed that its internet gross sales for the primary quarter of 2025 elevated by 3% to SEK 55,333.
For 1 December 2024 to twenty-eight February 2025, Gross revenue amounted to SEK 27,169 million, down from 27,655 million. H&M mentioned to “destructive exterior elements, elevated markdowns and investments within the buyer providing”.
Working revenue amounted to SEK 1,203 m (2,077), equivalent to an working margin of two.2 % (3.9). The lower in working revenue is attributable to the decrease gross margin.
Through the interval, the corporate continued to optimise its retailer portfolio by closing choose shops. It went into the quarter with almost 120 fewer shops in comparison with the identical time final yr and it had 40 internet retailer closures throughout the interval.
Daniel Ervér, CEO at H&M Group, mentioned: “Working revenue and profitability had been impacted by briefly difficult improvement of the gross margin. Our major priorities are a strengthened product providing, a extra inspiring purchasing expertise and a stronger model. Via this, we create the circumstances for long-term, worthwhile and sustainable development.
Wanting forward, The H&M group’s gross sales within the month of March 2025 are anticipated to extend by 1 % in native currencies in contrast with the identical month the earlier yr. H&M specifically is about to recieve a gross sales increase from its excessive anticipated collaborative assortment with Magda Butrym that is set to launch on 24 April.
Daniel Ervér, CEO at H&M Group
Ervér continued: “Though we’ve got made vital progress in our plan and have good value management, our gross sales and earnings within the quarter had been considerably weaker than deliberate – however the first quarter is the smallest quarter of the yr for us by way of gross sales and margin, and we’re assured going ahead.
“We are able to see that the enhancements we’ve got made, particularly within the ladies’s assortment, are beginning to have a constructive impact. Right here we’ve got simplified the organisation and grow to be quicker at adapting to new traits and making a extra related assortment.
“Via our omni-model we’re persevering with to combine the bodily and digital gross sales channels, making it simpler for our prospects to seek out what they’re in search of. The upgraded digital retailer was rolled out to extra markets within the quarter and has been well-received by our prospects. Upgrades to our bodily shops proceed to be given excessive precedence. Along with rebuilding key shops in a number of main cities, we’re increasing buyer expertise upgrades to extra shops in additional markets throughout the yr.
“With macroeconomic and geopolitical uncertainty, it will be important that we proceed to focus absolutely on our plan and supply the very best mixture of vogue, high quality, value and sustainability for everybody.”
