Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

H&M’s September-November Profit Rises More than Expected as Sales Recover

H&M’s September-November Profit Rises More than Expected as Sales Recover

Friday, 28 January, 2022 - 07:45
A view shows an H&M warehouse at Magna Park in Milton Keynes, Britain, September 26, 2021. (Reuters)

Sweden's H&M reported on Friday a bigger profit rise than expected for the September-November period on the back of well-received collections and cost control.


Pretax profit at the world's second-biggest fashion retailer grew to 6.00 billion crowns ($640.1 million) from a year-earlier 3.67 billion in the period, its fiscal fourth quarter. Analysts polled by Refinitiv had on average forecast a 5.43 billion crown profit.


"The strong result for the quarter is mainly a result of well-received collections with more full-price sales, lower mark-downs and good cost control," the group said in a statement.


H&M proposed an ordinary dividend of 6.50 crowns per share to be paid in two installments, and authorization for a 3 billion share buy-back program. H&M said it aimed to double sales by 2030 while at the same time halve its carbon footprint, and that it aimed for profitability to exceed 10% over time.


"To achieve the ambitious growth and climate goals, investments are being increased. For 2022 capex is expected to amount to around 10 billion crowns," it said.


Editor Picks

Multimedia