The Swedish fashion retailer saw a dip in sales in the time leading up to Black Friday and Christmas, although it said sales growth improved in December and January
H&M has reported sales that fell short of expectations for the past year, citing setbacks from Red Sea shipping delays and the late arrival of Black Friday.
Despite this, the Swedish fashion giant noted an uptick in sales growth during December and January as it embarked on a new financial year. Daniel Erver, who took the helm as Hennes & Mauritz’s chief last January, expressed his belief that the company is “on the right track”.
The retailer disclosed a 3% increase in sales, in local currency terms, reaching 62.2bn Swedish krona (£4.5bn) for the quarter ending November, missing analyst predictions of around 63.5 billion Swedish krona (£4.6 bn).
This news led to an early dip in the company’s share price. H&M acknowledged an accumulation of inventory during this period due to prolonged transport times amid ongoing disruptions.
For the full year ending in November, net sales for the group rose by 1% to 234.5bn Swedish krona (£17.1bn). Over the course of the year, the company inaugurated 88 new stores. Additionally, H&M revealed a 4% sales boost in the two months leading up to January 28, signalling a surge in consumer demand.
The leadership at H&M has been busy with a strategic overhaul in recent months, which included shuttering some outlets within its Monki brand to streamline operations. Mr Erver highlighted: “During 2024, we made significant improvements.”
He pointed out that revamping the H&M product range was a top priority, with a particular emphasis on womenswear, where efforts were made to enhance trend responsiveness and the overall relevance of the assortment.
“In the fourth quarter, full price selling of womenswear increased in all channels. We accelerated the pace of improvements to our supply chain, increasing flexibility and product availability across channels.”
