Fashion Retailer H&M Clocks 10% Top-Line Growth In Q4; Notes Challenging External Factors

Shivani Kumaresan
1 min read
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In this article:

  • Swedish clothing giant Hennes & Mauritz AB (OTC: HNNMY) reported a 10% year-on-year increase in fourth-quarter FY22 sales to SEK 62.4 billion.

  • The results were impacted by a one-time cost of SEK 836 million for the cost and efficiency program. Gross profit amounted to SEK 31.01 billion with a gross margin of 49.7%.

  • Operating profit amounted to SEK 821 million and the operating margin was 1.3%. The company attributed the lower profit in the fourth quarter to negative external factors, loss of the operating profit previously contributed by Russia, and the one-time cost of the cost and efficiency program.

  • The board of directors is proposing an ordinary dividend of SEK 6.50 per share to the annual general meeting to be paid in two installments.

  • For FY2022, the company saw a 12% rise in sales to SEK 223 billion. Operating profit was SEK 7.2 billion with a margin of 3.2%.

  • "Our decision to wind down the business in Russia, which was an important and profitable market, has had a significant negative impact on our results," said CEO Helena Helmersson.

  • "The hikes in raw materials and freight costs combined with a historically strong US dollar resulted in extensive cost increases for purchases of goods."

  • H&M group's sales increased by 5% in local currencies in the period Dec 1, 2022 – Jan 25, 2023.

  • Price Action: HNNMY shares closed higher by 2.61% at $2.52 on Thursday.

  • Photo Via Company

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This article originally appeared on Benzinga.com

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