• The H&M group's net sales in the third quarter amounted to SEK 59,011 m (60,897). In local currencies net sales were flat compared with the previous year.
• Gross profit amounted to SEK 30,133 m (31,015). This corresponds to a gross margin of 51.1 percent (50.9).
• Selling and administrative expenses increased by 1 percent to SEK 26,602 m (26,271). In local currencies the increase was 4 percent.
• Operating profit amounted to SEK 3,507 m (4,739), corresponding to an operating margin of 5.9 percent (7.8). Excluding currency translation effects and winding-down costs the operating margin was comparable with the previous year.
• The result after tax amounted to SEK 2,307 m (3,319), corresponding to SEK 1.44 (2.04) per share.
• Converted into Swedish kronor the stock-in-trade increased by 3 percent to SEK 41,738 m (40,358). The composition of the stock-in-trade is good.
• Cash flow from operating activities, amounted to SEK 8,215 m (12,257).

• The H&M group's net sales in the first nine months of the financial year amounted to SEK 172,285 m (173,385). In local currencies, net sales were flat compared with the previous year.
• Gross profit increased to SEK 91,357 m (87,239). This corresponds to a gross margin of 53.0 percent (50.3).
• Selling and administrative expenses increased by 1 percent in SEK. In local currencies the increase was 1 percent.
• Operating profit increased to SEK 12,682 m (10,205), corresponding to an operating margin of 7.4 percent (5.9). 
• The result after tax increased by 19 percent to SEK 8,503 m (7,147), corresponding to SEK 5.29 (4.39) per share.
• Cash flow from operating activities increased to SEK 24,782 m (24,742).
• Financial net cash amounted to SEK 9,396 m (13,555). Cash and cash equivalents plus undrawn credit facilities were SEK 41,838 m (43,918).

• The autumn collection has been very well received and sales in the month of September 2024 are expected to increase by 11 percent in local currencies compared with the same month the previous year.
• In September a number of initiatives have been initiated, such as upgrades to physical stores, the roll-out of a new digital experience, and the launch of the autumn collection with brand-reinforcing events and collaborations that will take place during the autumn.
• The first flagship store for H&M Beauty in Sweden was opened in September.
• During the autumn H&M is opening digital stores on Douyin and Pinduoduo, two of China's biggest e-commerce platforms.
• The first H&M store in Brazil will open in São Paulo at the end of 2025.
• Based on the authorisation granted by the annual general meeting the board of directors has decided to buy back H&M class B shares for SEK 1 billion, starting on 26 September 2024 and continuing until no later than 26 November 2024.

 
"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."
- Daniel Ervér, CEO.

Comments by Daniel Ervér, CEO 
 
During the quarter we've primarily focused on creating a strong assortment that gives the customer the best value for money while also upgrading both the physical and digital store experience. The quarter started with slow sales in June due to cold weather in many of our key European markets. In July and August we saw sales pick up, with even stronger sales development in September. Despite a challenging start, we conclude the quarter with sales on par with last year in local currencies.
 
Cost control remained good, but operating profit was negatively impacted by currency translation effects and winding-down costs. Disregarding these effects the operating margin in the third quarter was comparable with last year, despite a significant increase in marketing costs in the quarter. These aim to strengthen the H&M brand in the long term, starting from the launch of the autumn collection in September.
 
The autumn collection represents the best of H&M: fantastic fashion and good quality at the best price, in a sustainable way. With an even better experience in both our digital and many of our physical stores, as well as collaborations and unique events, we've raised the bar for H&M. Charli XCX is the face of the campaign, supported by both global and local artists and models. The first collections of the autumn have been very well received by customers, with good sales and strong resonance on social media.
 
2024 is a year in which we're laying the foundation for future growth. We're increasing the pace of improvements in our customer offering and deprioritising things that don't strengthen our brands or contribute to our sales and profitability. Consumers' living costs have remained high during the year, and at the same time we continue to see turbulence in the world around us. External factors have impacted our sales revenue and purchasing costs more than we expected. At present we estimate that this year's operating margin will be lower than 10 percent. We are strengthening the H&M brand by investing in products, the shopping experience and marketing and are already seeing that the efforts we have started are having an effect. We are confident that our plan will contribute to increased sales and profitability.
 

COMMUNICATION IN CONJUNCTION WITH THE NINE-MONTH REPORT
The nine-month report, i.e., 1 December 2023 - 31 August 2024, will be published at 08:00 CEST on 26 September 2024, followed by a telephone conference at 09:00 CEST for the financial market and media. The telephone conference will be held in English, hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.
  
For log in details for the telephone conference please register via this link:
https://app.webinar.net/XoAgzndE9nm
 
To book interviews in conjunction with the nine-month report on 26 September 2024, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.
 

Contact

Joseph Ahlberg, Head of IR +46 73 465 93 92
Daniel Ervér, CEO +46 8 796 55 00 (switchboard)
Adam Karlsson, CFO +46 8 796 55 00 (switchboard)

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46 8 796 55 00, e-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220
 
For more information about the H&M group visit hmgroup.com.

Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CEST) on 26 September 2024. This interim report and other information about the H&M group are available at hmgroup.com.
  

H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M's business idea is to offer fashion and quality at the best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, & Other Stories, H&M HOME and ARKET as well as Sellpy. For further information, visit hmgroup.com.