In terms of local currencies, net sales grew by 1%.
During the period ending 31 May 2023, H&M’s gross profit rose to SKr56.22bn, representing a gross margin of 50%.
The retailer also registered an operating profit of SKr5.46bn in H1 FY23, which corresponds to an operating margin of 4.9%.
H&M saw its H1 result impacted by high raw materials and freight costs, a strong US dollar, the growing energy costs and the impact of its Russian operation closure.
In the second quarter (Q2) of FY23, the clothing company reported sales growth of 6% to SKr57.61bn as against the same period of the previous year.
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Its operating profit was SKr4.74bn, which corresponds to a gross margin of 8.2%% in Q2 FY23. Gross profit rose to SKr30.33bn, representing a gross margin of 52.7%.
High raw materials and freight costs, as well as a strong US dollar, negatively impacted the result compared with the previous year.
H&M CEO Helena Helmersson said: “With the second quarter behind us we can conclude that we have taken a number of further important steps towards our goals. We increased sales in many markets despite reduced purchasing power and unfavourable weather conditions compared with last year.
Helmersson noted that its summer collections have been well received and Q3 has begun with a good start.
Helmersson added: “The conditions for increased growth, as well as profitability, continue to develop in a favourable direction.
“The company stated that the external factors that impact its purchasing costs continue to improve and its work on the cost and efficiency programme is advancing at an accelerated pace and much of the work that we have done in recent years is starting to bear fruit.”
“With a robust financial position, stable cash flow and a well-balanced inventory, the H&M group stands strong. Our long-term goals remain in place. Already next year the operating margin is to reach 10%.”
Earlier this month, H&M signed a long-term agreement with Chile-based shopping mall company Parque Arauco to open three stores in its Colombia properties.