Results for the year were impacted by one-time costs of SEK 2,591 million for winding down the Russian operations and of a cost and efficiency programme.

The gross margin in FY22 was 50.7 percent. Adjusted for the one-time costs the gross margin was 50.8 percent. The group’s profit after tax was SEK 3,566 million, corresponding to SEK 2.16 per share. Furthermore, the cash flow from operating activities amounted to SEK 24,476 million, H&M said in a press release.

Swedish multinational clothing company Hennes & Mauritz AB (H&M) has reported 12 per cent year-on-year (YoY) increase in net sales to SEK 223,553 million (approximately $21,704.81 million) in financial year 2022 (FY22), ended November 30, 2022. The company’s operating profit was SEK 7,169 million, corresponding to an operating margin of 3.2 per cent in FY22.

For the fourth quarter (Q4) of FY22, net sales increased by 10 per cent to SEK 62,433 million. In local currencies, net sales were flat. Gross profit amounted to SEK 31,011 million. This corresponds to a gross margin of 49.7 per cent.

The company’s operating profit in Q4 FY22 was SEK 821 million, corresponding to an operating margin of 1.3 per cent. The lower profit in the fourth quarter when compared with the same quarter in the previous year is mainly explained by the negative external factors, loss of the operating profit previously contributed by Russia, and the one-time cost of the cost and efficiency programme.

“Sales in the new financial year have started well. The external factors are still challenging but are moving in the right direction. Combined with our investments and efficiency improvements, there are very good prerequisites for 2023 to be a year of increased sales, and improved profitability. Thus, our goal of achieving a double-digit operating margin for full-year 2024 remains in place,” said Helena Helmersson, CEO.

Fibre2Fashion News Desk (DP)