H&M Hennes & Mauritz AB, also known as H&M Group, is a multinational clothing company based in Sweden that focuses on fast-fashion clothing.
Recently H&M group disclosed its financial report for the year 2023 covering the period 1 December 2022 – 30 November 2023 net sales increased by 6 percent to SEK 236,014* m (223,553), compared with 2022.
H&M brand’s namely COS, Monki, Weekday, & Other Stories and Arket – continue to develop well as the report says published by H&M.
Despite of lower purchasing power for many consumers the year was marked by high inflation and high interest rates the net sales for H&M comparable markets increased in relation to 2022.
Overall, H&M achieved an increase in profit in 2023 of 145%, which amounted to 8.7 billion Swedish kronor (771 million euros) or 5.35 Swedish kronor per share (0.47 euros), as compared to the prior financial year.
At the end of last fiscal year, the group operated 4 369 stores, a decrease of 96 stores as compared to fiscal 2022, with 91 stores opening and 197 stores closing.
But from the 1st of December 2023 to the 29th of January 2024, the group’s net sales decreased 4% in local currencies, on a comparable basis to the same period of the previous year.
Helena Helmersson, CEO H&M Group, said “Operating profit has been positively impacted by a stronger gross margin, the cost and efficiency programmer, and good cost control.”
“In 2023 we took important steps towards our long-term goals. Our improvement work in the supply chain and continued normalization of the external factors that influence purchasing costs resulted in a stronger gross margin.”
H&M has investments in areas such as tech and AI, so their customers are gaining access to a broader and more relevant assortment in stores and online.
The strategy set for 2024 by the H&M is stepping up the pace of investment in existing stores to provide an even more inspiring experience, while at the same time securing store portfolio for continued profitability and growth.
It has been said prices of H&M textile products in Sweden are relatively low. On the other hand, prices of H&M in Sweden’s neighboring countries, like for instance Norway, are well above the European price level.
To gain more profit H&M is creating new revenue streams through a variety of strategic partnerships and new circular business models, and to have great potential in the company’s investment.
H&M is working for greater use of recycled and more sustainably produced materials for the customers to long-term sustainability goals.
China, Bangladesh and Turkey are top three locations where H&M sources its products. H&M is the single largest foreign clothing buyer in Bangladesh, sourcing more than $3.50 billion worth of apparel in the year 2022. The Swedish clothing retailer sources 20 per cent of its products from the country.
