In accordance with CEO Daniel Ever, H&M Group – chargeable for H&M, Weekday, COS, Monki, & Different Tales and Arket – is ‘heading in the right direction’ after reporting a 28% enhance in working revenue to £1.2 billion (SEK 17.3 billion) for the yr ending 30 November 2024.
For the fourth quarter, from 1 September to 30 November 2024, the retail large’s web gross sales amounted to £4.54 billion (SEK 62.19 billion). Gross revenue elevated to £2.48 billion (SEK 33.94 billion) with a gross margin of 54.6%. In the meantime, working revenue elevated to £340 million (SEK 4.62 billion), with an working margin of seven.4%.
For the total yr, from 1 December 2023 to 30 November 2024, H&M group’s web gross sales amounted to £17.12 billion (SEK 234.47 billion). Gross revenue elevated by 4% to £9.15 billion (SEK 125.29 billion) with a gross margin of 53.4%. Working revenue elevated by 28% in contrast with the earlier yr excluding the consequence from investments in related firms and joint ventures.
Through the yr, H&M Group opened 88 new shops and closed 204 because it continued to optimise its retailer portfolio. Erver mentioned, “upgrading our retailer portfolio will stay a precedence for us”.
Daniel Ervér, CEO of H&M Group, mentioned: “After one yr as CEO, I’m assured that we’re heading in the right direction. We’ve got set a transparent route focusing totally on our core enterprise: bettering what makes the largest distinction for the client and eradicating what doesn’t. We’re happy with the progress now we have made to additional strengthen our merchandise, purchasing expertise, and model constructing. Whereas there’s a lot left to do, now we have a robust plan to drive the long-term progress we’re aiming for.
“As we look forward to 2025, we’ll proceed to strengthen our core enterprise and elevate our buyer providing, whereas persevering with the sturdy work on price effectivity. We pace up our product creation processes, enhance the precision in aligning provide with demand, and enhance the product availability for our clients on-line in addition to in shops by integrating each channels extra intently with one another… We will even improve our digital expertise and proceed to strengthen our model presence in main vogue cities.
“Whereas continued difficult macroeconomic situations and geopolitical uncertainty could affect the patron sentiment throughout 2025, we see some optimistic indicators equivalent to inflation and rates of interest taking place… This, along with our enterprise concept – vogue and high quality at one of the best worth in a sustainable means – creates a robust resilience and positions us nicely for progress within the world vogue market.”
Trying forward, in gentle of the financial setting, the H&M Group has three long-term targets: long-term gross sales progress of not less than 10% per yr, an working margin that exceeds 10% and a 56% discount in greenhouse gasoline emissions.
