H&M Group’s recent Q4 update reveals a marginal increase in net sales, maintaining the brand’s minimalist style. During the period from September 1 to November 30, net sales reached SEK62.629 billion (€5.5bn/£4.8bn/US$6.1bn), nearly flat compared to the previous year. Excluding Russia and Belarus, the increase was 3% in SEK, translating to a 1% drop in local currencies. The overall net sales experienced a 4% decline in local currencies, slightly worse than the anticipated 3% drop projected by analysts.
For the full year starting December 1, 2022, net sales saw a 6% rise to SEK236 billion. Excluding Russia and Belarus, the increase was 8% in SEK but only 1% in local currencies.
While provisional, full-year results, including insights into sales performance, margins, costs, and profits, are expected at the end of January. H&M’s prioritization of margins may have impacted sales by offering fewer discounts.
Drawing comparisons with Inditex, both companies, operating around 10,500 stores globally, may have been affected by weather fluctuations and the cost-of-living crisis that impacted their smaller peers in late summer and early autumn.
Extreme weather conditions disrupted shopping patterns, impacting sales of seasonal items. As 2024 unfolds, the hope is for a more predictable climate that aligns with the fashion industry’s long-range planning.
