H&M 2Q Sales SEK54.5B – MarketWatch

By Dominic Chopping

STOCKHOLM – Hennes & Mauritz AB of Sweden on Wednesday launched a share buyback of three billion Swedish kronor ($ 295.4 million) and reported a higher-than-expected net profit for the second fiscal quarter, as profits were driven by well-received collections and lower sales.

The fashion retailer said sales in physical stores increased substantially in the quarter ended May 31, while online continued to perform well, although sales in June are expected to decline by 6%. in local currencies during the year amid difficult comparisons. Paused sales in Russia, Belarus and Ukraine account for five percentage points of declining June sales, the company said.

There are still disruptions and delays in the supply chain, but they are gradually being reduced and at the same time there is substantial inflation, the company said.

H&M said it is studying several options in the midst of the war in Ukraine that take into account customers and colleagues, as well as the impact on the business as a whole.

“We are doing extensive work to prioritize initiatives, redistribute resources, and ensure good profitability,” said Helena Helmersson, executive director.

The company recorded a net profit of SEK 3.68 billion during the quarter, compared to SEK 2.75 billion in the previous year. Analysts surveyed by FactSet expected SEK 3.09 billion.

Sales increased by 17% to SEK 54.5 billion, as previously announced.

Write to Dominic Chopping at dominic.chopping@wsj.com

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