For the third quarter H&M net sales increased by three percent. The reported gross margin was 49 percent. Increased raw materials and freight prices as well as a stronger US dollar resulted in substantial cost increases for purchases of goods.
A cost and efficiency program is being initiated by H&M to further streamline the business. The savings from the program is expected to become visible in the second half of 2023. Agreements have been signed with developers of new solar farms to secure access to renewable energy for many years to come. This will help the H&M group reach its carbon reduction targets as well as securing energy prices for parts of its own operations.
The autumn collections were well received and sales in September 2022 were up on the previous year.
In the third quarter the company decided to pause sales and wind down the business in Russia. This had a significant effect on the company’s sales and profitability. Sales then gradually improved, despite a heat wave in several European countries and some remaining delays in the supply of goods. H&M has undertaken initiatives to meet customers’ expectations. This involves ensuring the best customer offering for all the brands and the best customer experience.