The group, which owns H&M, & Other Stories and Monki, saw net sales reach SEK 59bn (£4.35bn) between 1 June and 31 August 2024, compared to SEK 60.9bn (£4.5bn) in the third quarter of 2023. In local currencies, net sales were flat compared with the previous year.
Meanwhile, gross profit was SEK 30.1bn (£2.22bn) and operating profit reached SEK 3.5bn (£250m), compared to operating profits of SEK 4.7bn (£3.7bn) in the third quarter of 2023.
CEO Daniel Ervér noted the quarter started with slow sales in June due to cold weather in many key European markets: “Despite a challenging start, we conclude the quarter with sales on par with last year in local currencies.”
In a statement, the group said that its autumn collection has “been very well received” and sales in the month of September 2024 are expected to increase by 11% in local currencies year on year.
In addition, new bricks and mortar stores and upgrades will help to ramp up sales in the autumn, including the first flagship store for H&M Beauty in Sweden, which opened in September, and digital stores on China’s ecommerce platforms, Douyin and Pinduoduo. H&M’s first store in Brazil will also open its doors in São Paulo at the end of 2025.
Due to external factors, such as cost of living, which have impacted the group’s sales revenue and purchasing costs, it estimates that this year’s operating margin will be lower than 10%.
Ervér added: “Despite a challenging start, we are concluding the third quarter with sales on par with last year in local currencies and with good cost control.
“We are strengthening the H&M brand by investing in products, the shopping experience and marketing, which we are already seeing start to make an impact and which will contribute to increased sales and profitability.”