Swedish fashion giant H&M has reported its “best results for many years” during the second quarter despite warning that sales in June are likely to be hit by the unseasonable weather.
Operating profit for the second quarter to May 31, 2024, rose to SEK 7.09bn (£530m), while gross profit was up 11% to SEK 33.57bn (£2.5bn).
H&M reported a 3% increase in net sales for the quarter to SEK 59.6bn (£4.45bn).
Sales for the first half of the year also edged up 1% to SEK 113.27bn (£8.45bn), while operating profit and gross profit for the half increased to SEK 9.18bn (£690m) and SEK 61.22bn (£4.57bn) respectively.
H&M said sales for this month are expected to drop by 6% in local currencies compared to last year but that sales for June are to be seen “in the light of strong comparative figures from 2023”.
The fashion giant added that “unstable weather” conditions in many of its biggest markets at the start of the month had a “negative impact” on sales.
H&M said sales recovered as a result of weather normalising towards the end of June and spring/summer collections have been a hit with shoppers.
Chief executive Daniel Ervér said: “We achieved our best results for many years in the second quarter, showing once more the H&M group’s strength and robust financial position, with strong cash flow as well as improved profitability and sales.
“We are now raising our ambitions further to strengthen the brand, the customer offering and the shopping experience. With a focus on our customers, committed colleagues and a faster pace of investment in the second half of the year, we see good conditions for continued profitable, long-term and sustainable growth.”
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