H&M surges after fast fashion giant posts surprise Q1 income
Investing.com -- H&M Hennes & Mauritz AB (ST:HMb) has reported a surprise first-quarter income, as the fast fashion retailer was boosted by the consolidation of second-hand platform Sellpy into its operations.
Operating profit for the three months ended on February 28 came in at SEK725 million (SEK1 = $0.0959), up by over 58% from SEK458M in the corresponding period last year. Bloomberg consensus estimates had seen the figure slumping to a loss of SEK1.03 billion.
Operating margin, which H&M hopes to increase to 10% by next year, was 1.3% during the quarter.
Analysts also pointed to H&M's quarterly gross margin of 47.2%. Although the number dipped versus the first quarter of 2022 due to elevated purchasing costs and a strong U.S. dollar, it was still above projections of 45.8%.
Aiding the bottom-line result was a positive effect of SEK999M that stemmed primarily from an accounting gain linked to the decision to fold in Sellpy, an online portal where customers can shop for and sell used items.
Shares in H&M soared by more than 9% in early European trading on Thursday.
The announcement comes after H&M unveiled quarterly sales growth earlier this month that missed expectations. Sales moved up by 3% year-on-year on a local currency basis to SEK54.87B, but the uptick was below Bloomberg forecasts of 4.21%.
In a statement, chief executive officer Helena Helmersson noted that the trading environment remains "challenging." However, she said input cost pressures, which analysts have flagged as a key source of strain for the company, have improved, while plans to reduce expenses are "proceeding at full speed."
https://www.investing.com/news/stock-ma ... me-3044642
H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
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Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
H&M: Russia exit cost £300m
H&M’s exit from Russia last year cost the fast fashion retailer almost £300 million.
The Sweden-based company announced today that its profit for 2022 was down 56.5% to SEK6.22 billion (£484.6 million), though this was better than analysts’ excpectations, with a loss predicted.
This drop, it said, was partly due to a number of one-off items, as sales increased. This included H&M’s decision to close its 172 shops in Russia and three in Belarus after the invasion of Ukraine.
“The consequences of our decision also had a significant negative impact on our results, since Russia was an important and profitable market for us,” CEO Helena Helmersson said.
In total, closing down its Russian operations cost H&M SEK3.7 billion.
https://www.standard.co.uk/business/fts ... 70967.html
H&M’s exit from Russia last year cost the fast fashion retailer almost £300 million.
The Sweden-based company announced today that its profit for 2022 was down 56.5% to SEK6.22 billion (£484.6 million), though this was better than analysts’ excpectations, with a loss predicted.
This drop, it said, was partly due to a number of one-off items, as sales increased. This included H&M’s decision to close its 172 shops in Russia and three in Belarus after the invasion of Ukraine.
“The consequences of our decision also had a significant negative impact on our results, since Russia was an important and profitable market for us,” CEO Helena Helmersson said.
In total, closing down its Russian operations cost H&M SEK3.7 billion.
https://www.standard.co.uk/business/fts ... 70967.html
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Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
H & M Hennes & Mauritz (ST:HMb) stock rose 0.8% after Morgan Stanley upgraded its investment stance on the fast fashion giant to ‘equal-weight’ from ‘underweight’, citing margin improvements that helped offset weaker top-line growth.
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Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
In equity news, shares in Swedish clothing giant H&M gained as the company said June sales had started well despite weaker-than-expected second quarter sales.
...
Losses were capped somewhat by a rise in shares of H&M, which lifted retailer stocks after it flagged sales in June, the first month of its third quarter, had got off to a good start.
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STOCKHOLM (Reuters) -H&M reported weaker than expected second quarter sales on Thursday as chilly weather held back demand in key markets, although the Swedish clothes group said June had started well and its shares rose by 3% in early trading.
Analysts polled by Reuters had on average forecast a year-on-year rise of 1% after H&M flagged in late March that cold weather was dampening demand for spring and summer styles.
"Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group's large markets" H&M said.
Jefferies said in a note to clients that the update was a little less downbeat than feared, but it was still a clear lag compared to competitors, with cold weather in northern Europe a drag as well as H&M's large U.S. presence.
Zara owner Inditex (BME:ITX), whose largest market is warmer Spain, has a smaller share of sales in northern Europe and the U.S. and is also less affected by weather swings.
H&M said sales in June, the first month of its third quarter, had got off to a good start and Richard Chamberlain at Royal Bank of Canada said this period will be helped by warmer weather and a positive calendar impact.
Net sales at the world's second-biggest fashion retailer after were up 6% to 57.6 billion crowns ($5.36 billion) against a forecast 7% rise.
H&M launched a savings drive in 2022 after a spike in costs which it has only partly been passing on to cash-strapped customers, and its sales growth has been lagging that of Inditex as well as online rivals such as the fast-expanding Shein.
Inditex, which has coped better than H&M in sluggish markets, last week said net sales in its quarter through April were up 13% and, in May, up 16%.
H&M's unchanged local currency turnover is a slowdown from the previous quarter, as well as from 2022.
H&M, whose single-biggest market is Germany, is due to publish its full quarterly earnings report on June 29.
...
Losses were capped somewhat by a rise in shares of H&M, which lifted retailer stocks after it flagged sales in June, the first month of its third quarter, had got off to a good start.
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STOCKHOLM (Reuters) -H&M reported weaker than expected second quarter sales on Thursday as chilly weather held back demand in key markets, although the Swedish clothes group said June had started well and its shares rose by 3% in early trading.
Analysts polled by Reuters had on average forecast a year-on-year rise of 1% after H&M flagged in late March that cold weather was dampening demand for spring and summer styles.
"Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group's large markets" H&M said.
Jefferies said in a note to clients that the update was a little less downbeat than feared, but it was still a clear lag compared to competitors, with cold weather in northern Europe a drag as well as H&M's large U.S. presence.
Zara owner Inditex (BME:ITX), whose largest market is warmer Spain, has a smaller share of sales in northern Europe and the U.S. and is also less affected by weather swings.
H&M said sales in June, the first month of its third quarter, had got off to a good start and Richard Chamberlain at Royal Bank of Canada said this period will be helped by warmer weather and a positive calendar impact.
Net sales at the world's second-biggest fashion retailer after were up 6% to 57.6 billion crowns ($5.36 billion) against a forecast 7% rise.
H&M launched a savings drive in 2022 after a spike in costs which it has only partly been passing on to cash-strapped customers, and its sales growth has been lagging that of Inditex as well as online rivals such as the fast-expanding Shein.
Inditex, which has coped better than H&M in sluggish markets, last week said net sales in its quarter through April were up 13% and, in May, up 16%.
H&M's unchanged local currency turnover is a slowdown from the previous quarter, as well as from 2022.
H&M, whose single-biggest market is Germany, is due to publish its full quarterly earnings report on June 29.
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Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
STOCKHOLM (Reuters) -Fashion retailer H&M's shares hit a 16-month high on Thursday after its second-quarter profit beat estimates as cost-cutting measures started to bear fruit and its summer collection benefited from warmer weather in Europe.
H&M, which has lagged Zara owner Inditex (BME:ITX), has sought to raise its fashion appeal and boost its higher-priced brands, targeting shoppers less vulnerable to the rising cost of living as fast-fashion giant Shein takes market share with less expensive clothes.
Shares in the world's second-biggest fashion retailer jumped 11% to hit their highest level since February 2022. They were last trading at 174.7 Swedish crowns.
H&M increased sales in many markets despite a squeeze on consumers' spending ability and "unfavourable" weather, CEO Helena Helmersson said, adding that its summer collection had got off to a good start as temperatures rose across northern Europe.
Sales from June 1-27 were up 10% from a year earlier, a good sign for the start of H&M's third quarter. The H&M womenswear collection, as well as strong performance from the Cos and Arket brands, drove the boost in sales, Helmersson said.
The stronger-than-expected profit helped investors digest a weaker margin of 8.2% for the second quarter, down from 9.2% a year earlier.
H&M blamed high raw material and freight costs for the lower margin, but said these factors had "pivoted from being negative to being positive", indicating easing inflationary pressure.
"Of course that comes with an opportunity to adjust prices," Helmersson told Reuters in an interview.
In China, where H&M has been struggling, Helmersson stuck to the same message as earlier this year, saying the company is not yet at the level it wants to be, but things are moving in the right direction.
DROP IN INVENTORY LEVEL SURPRISES
A sharp drop in inventory levels was a positive surprise, according to Cedric Rossi, next-gen consumer analyst at Bryan Garnier in Paris.
"I was really surprised to see that, without any higher promotional activity - because markdowns were in line with last year - H&M decreased its inventory position," Rossi said.
H&M's inventory was at 16.7% of rolling 12-month sales on May 31, down from 19.2% a year earlier.
H&M last year announced layoffs and other cost cuts that it said would help it reduce costs from the second half of 2023 onwards.
The cost cutting helped operating profit in the second quarter hit 4.74 billion Swedish crowns ($438.6 million), down from 4.98 billion a year earlier but well above the 4.07 billion forecast by analysts in a Refinitiv poll.
H&M, which closed a total of 303 stores across its brands in the year to May 31, said its new store openings would mainly be in "growth markets" while it would close stores mainly in established markets.
H&M, which has lagged Zara owner Inditex (BME:ITX), has sought to raise its fashion appeal and boost its higher-priced brands, targeting shoppers less vulnerable to the rising cost of living as fast-fashion giant Shein takes market share with less expensive clothes.
Shares in the world's second-biggest fashion retailer jumped 11% to hit their highest level since February 2022. They were last trading at 174.7 Swedish crowns.
H&M increased sales in many markets despite a squeeze on consumers' spending ability and "unfavourable" weather, CEO Helena Helmersson said, adding that its summer collection had got off to a good start as temperatures rose across northern Europe.
Sales from June 1-27 were up 10% from a year earlier, a good sign for the start of H&M's third quarter. The H&M womenswear collection, as well as strong performance from the Cos and Arket brands, drove the boost in sales, Helmersson said.
The stronger-than-expected profit helped investors digest a weaker margin of 8.2% for the second quarter, down from 9.2% a year earlier.
H&M blamed high raw material and freight costs for the lower margin, but said these factors had "pivoted from being negative to being positive", indicating easing inflationary pressure.
"Of course that comes with an opportunity to adjust prices," Helmersson told Reuters in an interview.
In China, where H&M has been struggling, Helmersson stuck to the same message as earlier this year, saying the company is not yet at the level it wants to be, but things are moving in the right direction.
DROP IN INVENTORY LEVEL SURPRISES
A sharp drop in inventory levels was a positive surprise, according to Cedric Rossi, next-gen consumer analyst at Bryan Garnier in Paris.
"I was really surprised to see that, without any higher promotional activity - because markdowns were in line with last year - H&M decreased its inventory position," Rossi said.
H&M's inventory was at 16.7% of rolling 12-month sales on May 31, down from 19.2% a year earlier.
H&M last year announced layoffs and other cost cuts that it said would help it reduce costs from the second half of 2023 onwards.
The cost cutting helped operating profit in the second quarter hit 4.74 billion Swedish crowns ($438.6 million), down from 4.98 billion a year earlier but well above the 4.07 billion forecast by analysts in a Refinitiv poll.
H&M, which closed a total of 303 stores across its brands in the year to May 31, said its new store openings would mainly be in "growth markets" while it would close stores mainly in established markets.
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Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
HELSINKI (Reuters) -Fashion retailer H&M (ST:HMb) will reopen most of its stores in Ukraine, beginning in November of this year, the Swedish company said in a statement on Thursday.
The retailer temporarily closed its stores in Ukraine following Russia's invasion of the country in February of last year.
"Preparations are being made to reopen the majority of the H&M stores where possible," the company said, adding it continues to monitor the security situation to ensure worker and customer safety.
As of November of 2021 the H&M group had eight stores in Ukraine, the company said last year.
The retailer temporarily closed its stores in Ukraine following Russia's invasion of the country in February of last year.
"Preparations are being made to reopen the majority of the H&M stores where possible," the company said, adding it continues to monitor the security situation to ensure worker and customer safety.
As of November of 2021 the H&M group had eight stores in Ukraine, the company said last year.
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Re: H&M Hennes & Mauritz AB STOKHOLM: HM.B odzież
H&M (ST:HMb) Akcje wzrosły o 5,5% po tym, jak drugi co do wielkości detalista odzieżowy na świecie odnotował wzrost kwartalnego zysku, do czego przyczyniło się cięcie kosztów. Mimo to H&M powiedział, że niezwykle gorąca pogoda na wielu rynkach europejskich opóźniła rozpoczęcie jesiennego sezonu zakupowego, powodując spadek sprzedaży we wrześniu.
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