H&M received one Net profit of 8,752 million Swedish krona (775 million euros) at the end of its last financial year, which ended last November, an increase of 145% compared to 3,566 million crowns (316 million euros) in 2022.
On their side the Group sales Swedish sales between December 2022 and November 2023 reached 236,035 million Swedish crowns (20,902 million euros). 5.6% more than a year earlier, while the Annual gross margin reached 51.2% from 50.7% of the previous year.
In the fourth quarter of its fiscal year, H&M achieved one Net profit of 1,587 million crowns (140 million euros) compared to losses of 864 million crowns (76.5 million euros) the previous year, while the Net sales amounted to 62,650 million Swedish krona (5,548 million euros).which represents an increase of 0.3% compared to the same period in 2022.
The company announced this Sales decreased 4% for the period from December 1, 2023 to January 29, 2024 in local currencies compared to the same period last year and underlines that the cost of markdowns as a percentage of sales is expected to increase in the first quarter compared to the corresponding quarter of the previous year, as the normal autumn period arrives late in the fourth quarter a relatively short time window for selling the autumn range.
New CEO
H&M also announced the appointment of Daniel Ervérresponsible for the H&M brand, as new President and CEO of the group with immediate effect following Helena Helmersson’s decision to resign and leave the group.
Daniel Ervér, 42, has been working in various positions at the H&M group for 18 years and previously served as director of H&M, the Scandinavian group’s main brand. In this sense, Ervér remains operational director of H&Mwhich means no successor will be named as director of H&M.
«The board would like to say a big thank you to Helena for her valuable contribution during this very intensive time. Helena is a valued leader who has decisively and effectively led and navigated the H&M Group through a period largely shaped by the pandemic as well as geopolitical and macroeconomic challenges. During this time we have taken clear steps towards our long-term goals. The group is solidly positioned, with positive profitability development and good conditions for further improvement in 2024He hinted Karl Johan Persson, President of H&Mand added that after Herlmersson’s resignation “Ervér is a competent, experienced and respected leader and has the necessary qualities to further develop the H&M Group«.
«I feel honored and very pleased about the trust the board has placed in me. We will continue to create unbeatable value for our customers and profitable growth and focus on offering our customers the best combination of fashion, quality, price and sustainability in an inspiring and engaging shopping environment.« said the new CEO of H&M.
Spain: the market most affected by store closures
At the same time and after presenting the annual results, the group acknowledged that the international adjustment would take place in 2024 greater impact on the Spanish market, where most H&M stores have to close. Especially from everyone Spain will bring together 17.5%.
The Swedish company is planning We are opening 100 stores and closing 160 worldwide in 2024. A few days ago H&M informed the unions of its intention company a Work Order File (ERE) in our country this will affect 588 employees and lead to the closure of 28 branches. This is the largest cut the company plans to make this year across all markets in which it operates. The Swedish textile chain attributes this process to “organizational, productive and economic causes in business«, and intends to start it Negotiation process next September.