H&M Hennes & Mauritz AB reported net sales of SEK 59,011 million for the third quarter of 2024, compared to SEK 60,897 million in the same period last year, with flat sales in local currencies. Gross profit for the quarter stood at SEK 30,133 million, translating to a gross margin of 51.1 percent, up from 50.9 percent last year. However, operating profit dropped to SEK 3,507 million, down from SEK 4,739 million, impacted by currency effects and winding-down costs.

For the nine-month period ending August 31, 2024, H&M’s net sales were SEK 172,285 million, marginally lower than the SEK 173,385 million recorded in the previous year. Gross profit improved to SEK 91,357 million, resulting in a higher gross margin of 53 percent compared to 50.3 percent last year. Operating profit rose to SEK 12,682 million, with a 7.4 percent margin, driven by better cost management.

Despite a challenging start, the company expects an 11 percent sales increase in September, fueled by a well-received autumn collection and investments in physical and digital store upgrades. Notable initiatives include the opening of the first H&M Beauty flagship store in Sweden, and upcoming launches on Chinese e-commerce platforms Douyin and Pinduoduo.

CEO Daniel Erver highlighted the strategic focus on strengthening the H&M brand through enhanced product offerings and marketing efforts, while addressing external challenges like high consumer costs and global instability. The board has authorized a share buyback program worth SEK 1 billion, set to commence on September 26.

H&M is set to open its first store in Brazil in Sao Paulo by late 2025, aiming for long-term growth and improved profitability.