The H&M Group, the second-largest clothing retailer in the world, announced on Thursday that it "achieved higher-than-expected profits for the period between March and May." The company stated, "The profits for the third quarter also represent a good start as the group seeks to catch up with faster-growing competitors." The operational profit for the Swedish group in the second quarter of the financial year, from March to May, reached 4.74 billion Swedish Krona (approximately 438.55 million dollars), down from 4.98 billion Krona in the same period last year. However, this was still above the profits expected by analysts in a Refinitiv survey, which estimated 4.07 billion Krona.
Sales in local currency rose by ten percent in the period from June 1 to June 27, the first month of the third quarter, compared to the same period last year. H&M's operating profit margin decreased to 8.2 percent in the second quarter, down from 9.2 percent a year earlier. The group reaffirmed its goal of achieving a profit margin of ten percent next year, a target that analysts say may be difficult to achieve. Last year, the group announced layoffs and other cost-cutting measures, which it stated would save expenses starting from the second half of 2023 and beyond.
