Swedish brand H&M expects sales to be up 20% in 2022
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Loading... - Allen Anderson
- 07 Feb 2022
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H&M is expecting sales in local currencies for 2022 to increase by 20 per cent compared with the same period last year. The period was negatively affected by the latest wave of the pandemic and its consequences in many of the group’s larger markets. By 2030, the H&M group is likely to double its sales while at the same time half its carbon footprint.
In 2021, the H&M group’s net sales in local currencies went up by 12 per cent. Converted into SEK the group’s net sales increased by 6 per cent to SEK 198,967 million (187,031). Gross profit climbed to SEK 105,006 million (93,544) for the reported period. This corresponds to a gross margin of 52.8 per cent (50.0).
The H&M group’s net sales in local currencies increased by 11 per cent in the fourth quarter 2021. Converted into SEK net sales grew by 8 per cent to SEK 56,813 million (52,549). Gross profit rose by 14 per cent to SEK 31,341 million (27,375). This corresponds to a gross margin of 55.2 per cent (52.1).
“We ended the year strongly, with sales back at the same level as before the pandemic and with profitability better than it has been for several years. Now that we are back to a more normalised situation with a strong financial position and good profitability, we can fully focus on growth again,”said Helena Helmersson, CEO.
The H&M group’s strong cash flow and financial position will be crucial for the ability to invest in sustainable growth. In 2022, H&M will double the level of investment. Alongside initiatives linked to each growth area H&M will invest further in infrastructure such as tech and the supply chain, but also in renewable energy and sustainable materials, H&M said in a press release.
“Through our investment arm Co:lab we now have around 20 investments in new companies that are important for the H&M group’s growth strategy. In a short time these investments have created significant value both financially and in the existing operations, for example by improving the customer experience and enabling innovation in sustainable materials. In an industry in rapid transition exciting opportunities arise, and we are constantly evaluating investments and acquisitions that could contribute to the H&M group’s continued sustainable growth,” explained Helmersson. Read More…
