Fashion Retailer H&M Reports 12% Top-Line Growth In Q1; Reports Delay In Start Of Spring Season In Many Markets

Swedish clothing giant Hennes & Mauritz AB HNNMY group reported a 12% year-on-year increase in first-quarter FY23 sales to SEK 54.87 billion.
Excluding Russia, Belarus and Ukraine, the increase was 16% in SEK and 7% in local currencies. The gross margin was 47.2%.
Sellpy, one of Europe's largest second-hand platforms and previously an associated company, is being consolidated into the H&M group from Q1.
Operating profit amounted to SEK 725 million, and the operating margin was 1.3%.
Cash and cash equivalents plus undrawn credit facilities at the end of Q1 was SEK 38.9 billion, and cash flow operating activities totaled SEK 4.9 billion.
For the period 1–31 March 2023, sales in local currencies are expected to increase by 4%.
The company noted that the start of the spring season has been delayed in many important markets as a result of cold weather.
"The H&M group continues to stand strong with a robust financial position, stable cash flow and a well-balanced inventory," said CEO Helena Helmersson.
"The start of the year shows that we have taken further steps towards the goal of achieving an operating margin of 10 percent already next year."
The annual general meeting will be held on May 4, 2023, to resolve, among other things, on the board's proposed ordinary dividend of SEK 6.50 per share, to be paid in two installments.
Price Action: HNNMY shares closed at $2.30 on Wednesday.