H&M does better than expected in Q4 as sales resume


H&M does better than expected in Q4 as sales pick up | Photo credits: H & M Hennes & Mauritz AB

STOCKHOLM, Jan 28 (Reuters) – Sweden’s H&M group on Friday reported stronger-than-expected pre-tax profit for the September-November period, its fourth fiscal quarter, on the back of well-received collections and tight control costs.

The pre-tax profit of the world’s second largest fashion retailer reached six billion crowns (573.31 million euros), against 3.67 billion a year earlier.

Analysts polled by Refinitiv on average had expected a profit of 5.43 billion crowns.

“The strong quarterly results are mainly the result of well-received collections with more sales at full price, lower markdowns and good cost control,” the group said in a statement.

H&M proposed to pay an ordinary dividend of 6.50 crowns per share in two instalments and to launch a share buyback program of 3 billion crowns.

The company said it aims to double its sales by 2030 while halving its carbon footprint.

“To achieve the ambitious growth and climate targets, investments are increasing. For 2022, investment expenditure should amount to around 10 billion crowns,” the group said. (Report Anna Ringstrom; French version Dina Kartit, edited by Blandine Hénault)

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