H&M Group reported a strong performance in the first quarter of 2022, with operating profits of SEK 725m (£56.5m) and operating margins of 1.3%.
In the three months to February 2023, profits after tax amounted to SEK 540m (£42.13m).
Net sales grew 12% in local currency terms to SEK54.8bn (£4.8bn) with sales of portfolio brands increasing 11% in local currencies.
The fashion retailer said it expects sales to increase by 4% in March compared to the same time last year as it hopes to benefit from the spring boost.
The company also announced the consolidation of Sellpy, one of Europe’s largest second-hand platforms, into the group in the first quarter of the year.
H&M chief executive Helena Helmersson said: “The H&M group continues to stand strong with a robust financial position, stable cash flow and a well-balanced inventory. The start of the year shows that we have taken further steps towards the goal of achieving an operating margin of 10% already next year.
”Portfolio brands – Cos, Monki, Weekday, & Other Stories and Arket – have developed strongly and are making an increasingly important contribution to the group’s growth. Cos has carried out an extensive upgrade of its assortment and strengthened its positioning in the premium segment. Arket continues to grow at a fast pace and has tripled its sales since 2019.”
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