Kvartalsrapport Q1 2023

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===== SIDA 1 =====

H & M Hennes & Mauritz AB 
 
Three-month report 
First quarter (1 December 2022 – 28 February 2023) 
• The H&M group’s net sales in SEK increased by 12 percent in the first quarter to SEK 54,872 m 
(49,166). In local currencies the increase was 3 percent. Excluding Russia, Belarus and Ukraine the 
increase was 16 percent in SEK and 7 percent in local currencies. 
• The gross margin was 47.2 percent (49.3). The external factors for purchases made for the first 
quarter were very negative compared with the corresponding period last year. 
• Sellpy, which is one of Europe’s largest second-hand platforms and was previously an associated 
company is being consolidated into the H&M group from the first quarter. 
• Operating profit amounted to SEK 725 m (458), corresponding to an operating margin of 
1.3 percent (0.9). A positive effect from remeasurement of associates, primarily a one time effect 
relating to Sellpy, is included at SEK 999 m (0). 
• The result after tax was SEK 540 m (217), corresponding to SEK 0.33 (0.13) per share. 
• Cash flow from operating activities increased to SEK 4,986 m (3,624). 
• Financial net cash amounted to SEK 10,424 m (17,446). Cash and cash equivalents plus undrawn 
credit facilities was SEK 38,923 m (42,848). 
• Sales for Portfolio Brands in the first quarter increased by 19 percent in SEK and by 11 percent in 
local currencies. 
• Stock-in-trade decreased by 16 percent currency-adjusted compared with the previous year. 
 
• For the period 1–31 March 2023 sales in local currencies are expected to increase by 4 percent 
compared with the same period last year. The start of the spring season has been delayed in many 
important markets as a result of cold weather. The spring collections have been well received 
where the weather has warmed up. 
• In a recent report by environmental and climate organisation Stand.earth the H&M group was the 
brand ranked highest for its climate actions out of a total of 43 fashion brands. 
• The H&M group is making progress towards reaching its long-term climate goals, as shown in the  
annual and sustainability report for 2022 that is published today. 
• The annual general meeting will be held on 4 May 2023 to resolve, among other things, on the 
board’s proposed ordinary dividend of SEK 6.50 per share, to be paid in two instalments, and the 
authorisation allowing it to buy back the group’s own B shares in the period up to the 2024 annual 
general meeting for a maximum of SEK 3 billion. The board of directors will wait to see how the 
company develops during the year and the authorisation will only be used if certain conditions are 
met. 
 
 
 
“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 percent already next year,” says Helena Helmersson, CEO. 
  
Q1

===== SIDA 2 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
2 
Comments by Helena Helmersson, CEO 
Although the world around us remains challenging, we are seeing several areas where 
developments are going in the right direction. The external factors that influence purchasing 
costs continue to improve, work on the cost and efficiency programme is proceeding at full 
speed, and many of the changes that we have made in recent years are starting to have an 
effect. At the same time, the spring collections have been well received in the markets where 
spring has arrived. We see progress in all growth areas: 
H&M. We are continuing with a number of initiatives aimed at offering our customers even 
more value. Thanks to our investments in areas such as tech, AI and the supply chain, we have 
improved precision and faster response times – giving our customers access to an even wider 
and more relevant assortment that is adjusted to regions, stores and online. This can be seen 
most clearly within H&M womenswear, which is attracting more and more customers. We are 
also continuing with our initiatives to improve the customer experience, with more inspiration 
and flexibility in our physical stores and digital channels. 
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. 
New growth and ventures include new business models, partnerships and investments in 
startups. Ten years ago we began investing in Sellpy, which in a short time has become one of 
Europe’s largest second-hand platforms. Now we are consolidating the company into the 
group, which visualises its value and generates a remeasurement effect of around SEK 1 billion 
in the quarter. We have more than 25 other promising companies in our portfolio such as 
Renewcell, TreeToTextile and Smartex, to name just a few.  
To sum up, the H&M group continues to stand strong with a robust financial position, stable 
cash flow and a well-balanced inventory. Our increased level of investment within all three 
growth areas makes us well placed for continued sustainable and profitable growth. The start 
of the year shows that we have taken further steps towards the goal of achieving an operating 
margin of 10 percent already next year.

===== SIDA 3 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
3 
Sales 
 
The H&M group’s net sales in the first quarter increased by 12 percent to SEK 54,872 m 
(49,166). In local currencies, net sales increased by 3 percent. Excluding Russia, Belarus and 
Ukraine the increase was 16 percent in SEK and 7 percent in local currencies. 
Around 70 percent of total sales take place in physical stores and around 30 percent online. 
Sales in the physical stores increased in the quarter despite there being 7 percent fewer stores 
than in the previous year. 
Sales for Portfolio Brands in the first quarter increased by 19 percent in SEK and by 11 percent 
in local currencies. 
Sales per region, first quarter 
 
Excluding Russia, Belarus and Ukraine sales increased in the Eastern Europe region by 
23 percent in SEK and by 16 percent in local currencies. 
The H&M group’s operations in Russia and Belarus have been wound down since 30 November 
2022, while operations in Ukraine have been paused. 
 
49,166
54,872
+ 12%
0
10,000
20,000
30,000
40,000
50,000
60,000
Q1
SEK m
2022
2023
SEK m SEK m  SEK LCY  
New stores
 (net)  
Q1 - 2023 Q1 - 2022 Q1 - 2023 28 Feb - 23 28 F eb - 22
The Nordics 4,842 4,440 9 6 -5 394 4 12
Western Europe 17,558 15,074 16 9 -14 1,065 1,106
Eastern Europe 4,081 5,152 -21 -30 -3 478 657
Southern Europe 7,047 6,300 12 6 -4 619 635
North & South America 13,526 10,931 24 9 -2 738 734
Asia, Oceania & Africa 7,818 7,269 8 0 -23 1,120 1,177
Total 54,872 49,166 12 3 -51 4,414 4,721
Change in % 
Number of stores

===== SIDA 4 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
4 
Gross profit and gross margin 
Gross profit and gross margin are a result of many factors, internal as well as external, and are 
mostly affected by the decisions that the H&M group takes in line with its strategy to always 
have the best combination of fashion, quality, price and sustainability. 
 
Gross profit increased to SEK 25,886 m (24,260) for the first quarter, corresponding to a gross 
margin of 47.2 percent (49.3). 
High raw materials and freight costs combined with a strong US dollar had a very negative 
impact on purchases made for the first quarter when compared with the previous year. Costs 
for markdowns in relation to sales were flattish compared with the same quarter last year. 
For most goods sold in the second quarter the market situation for purchases of goods was 
also very negative at the time the orders were placed. The situation is gradually becoming less 
negative and is expected to become positive for goods that will be sold later in the year. 
  
24,260 25,886
49.3% 47.2%
0
5,000
10,000
15,000
20,000
25,000
30,000
SEK m
Q1
2022
2023

===== SIDA 5 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
5 
Selling and administrative expenses 
 
Selling and administrative expenses increased in the first quarter by 10 percent to SEK 26,160 m 
(23,802). In local currencies the increase was 3 percent. 
Work on the cost and efficiency programme is progressing at full intensity. The programme is 
expected to result in annual savings of around SEK 2 billion. The positive effects are expected 
to gradually become visible starting in the second half of 2023. 
Operating profit and operating margin 
Operating profit in the first quarter amounted to SEK 725 m (458), corresponding to an 
operating margin of 1.3 percent (0.9). 
Compared with the same quarter last year operating profit was mainly affected by the 
following factors: 
• Increased raw materials and freight costs combined with a stronger US dollar, despite 
adjustment of pricing to the customer: around SEK 1.1 billion. 
• Operating profit formerly contributed by Russia: around SEK 480 m. 
• Higher energy prices: around SEK 200 m. 
• Positive effect from remeasurement of associates: around SEK 1 billion. 
Income statement including and excluding IFRS 16 effects 
 
For definitions of alternative performance measures, see the last page of the report .  
23,802
26,160
+ 10%
0
5,000
10,000
15,000
20,000
25,000
30,000
Q1
SEK m
2022
2023
SEK m
Q1
2023
Q1
2022
Net sales 54,872 49,166
Gross profit 25,886 24,260
Gross profit excl. IFRS 16 25,866 24,241
Operating profit 725 458
Operating margin, % 1.3 0.9
Operating profit excl. IFRS 16 353 208
Operating margin, %, excl. IFRS 16 0.6 0.4
Net financial items -329 -176
Net financial items, excl. IFRS 16 9 17
Profit after financial items 396 282
Profit after financial items, excl. IFRS 16 362 225
Profit for the period 540 217
Profit for the period, excl. IFRS 16 515 173
Depreciation & amortisation / write-downs 5,505 5,393
Depreciation & amortisation / write-downs, excl. IFRS 16 2,415 2,475

===== SIDA 6 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
6 
Stock-in-trade 
 
Currency adjusted the stock-in-trade decreased by 16 percent compared with last year. 
Converted into Swedish kronor the stock-in-trade amounted to SEK 41,040 m (39,331). 
The composition of the stock-in-trade is assessed to be good. 
The stock-in-trade in SEK represented 17.9 percent (18.9) of rolling 12-month sales. 
The investments in the supply chain and the integration of the sales channels continue. With a 
higher share of nearshoring, shorter lead times, more purchasing in season and more stable 
external logistics, the group is well placed for a continued improvement in the stock situation.  
  
39,331 41,040
+ 4%
0
10,000
20,000
30,000
40,000
50,000
28 February
SEK m
2022
2023

===== SIDA 7 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
7 
Expansion through integrated channels 
Expansion is taking place with a focus on omnichannel sales. Customers want to be able to 
shop and be inspired where, when and how they choose – in the stores, on the brands’ own 
websites, on digital marketplaces and on social media. The optimisation of the store portfolio is 
continuing in parallel, meeting customers’ needs in interaction with the digital channels. 
H&M opened its first store in Albania in mid-March. In the first quarter H&M opened online in 
Ecuador and launched on the Superbalist marketplace in South Africa. COS will launch in 
Mexico and Arket is scheduled to open in Estonia during the first half of the year, while & Other 
Stories will open its first store in Switzerland in 2023. Monki will open on Zalora in Hong Kong 
and & Other Stories on The Iconic in Australia during 2023. 
The H&M group is continuing to renegotiate a large number of leases as part of the company’s 
store optimisation, which also involves rebuilds and adjustment of the number of stores and of 
store space to ensure the best store portfolio in each market. The H&M group’s contracts allow 
around a third of leases to be renegotiated or exited each year. For 2023 the plan is to open 
around 100 new stores and close around 200 stores, making a net decrease of around 100 
stores. Most of the openings will be in growth markets, while the closures will mainly be in 
established markets. 
Store count and markets by brand 
As at 28 February 2023 the H&M group had 4,414 (4,721) stores, i.e. the total number of stores 
has decreased by 307 compared with the same point in time last year. 175 of the stores closed 
were in Russia and Belarus, where the business was wound down in 2022. During the current 
financial year 7 (15) new stores have opened and 58 (95) stores were closed. A total of 282 
(274) of the group’s stores are operated by franchise partners.  
 
Store Online
Brand Q1 - 2023 28 Feb - 2023 28 Feb - 2022
H&M -40 3,907 4,167 76 59
COS -5 254 27 1 47 38
Monki -4 74 96 17 29
Weekday -1 53 57 15 29
& Other Stories -2 69 77 24 32
ARKET 1 26 25 11 31
Afound 0 0 0 0 7
H&M HOME* 0 31 28 55 42
Sellpy 0 0 0 0 24
Total -51 4,414 4,721
COS, Monki, Weekday, & Other Stories and ARKET offer Global selling which enables customers in around 70 additional 
markets to shop online. The exact number of markets per brand that have this service varies. 
Total No of stores
* Concept stores. H&M HOME is also available through shop-in-shop in 392 H&M stores.
28 Feb - 2023
New Stores 
(net)
No. of markets

===== SIDA 8 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
8 
Financing and liquidity 
The H&M group aims to secure financial flexibility and freedom of action on the best possible 
terms. As previously, the efforts focus on continued improvements in working capital, cash flow 
and more efficient financing.  
Cash flow and working capital  
Cash flow from operating activities in the three-month period increased to SEK 4,986 m (3,624). 
Excluding IFRS 16, cash flow from operating activities increased to SEK 1,862 m (737). Working 
capital from operating activities amounted to SEK 21,441 m (18,857). 
 
Liquidity and debt financing 
The H&M group’s liquidity remains very good. As at 28 February 2023 cash and cash 
equivalents amounted to SEK 21,290 m (27,403). In addition, the group has undrawn credit 
facilities of SEK 17,633 m (15,445). The total liquidity buffer, i.e. cash and cash equivalents plus 
undrawn credit facilities, amounted to SEK 38,923 m (42,848). 
Interest-bearing liabilities in the form of commercial papers, bonds and loans from credit 
institutions amounted to SEK 10,866 m (9,957) as at 28 February 2023. The average maturity of 
interest-bearing liabilities was 4.1 (5.3) years. 
Financial net cash amounted to SEK 10,424 m (17,446). Net debt including provisions for 
pensions and excluding IFRS 16 amounted to SEK -10,081 m (-17,098). Net debt in relation to 
EBITDA amounted to -0.6 (-0.7) excluding IFRS 16. 
A maturity analysis of outstanding interest-bearing liabilities and undrawn credit facilities is 
given in the table below. 
 
Tax 
The group’s tax rate for the financial year 2022/2023 is expected to be 24–25 percent. For the 
first three quarters of the year an estimated tax rate of 24 percent is used to calculate the tax 
expense on the underlying result in each period. The final tax rate depends, among other 
things, on the results of the group’s various companies, the corporate tax rates in each country, 
non-deductible costs and tax expense relating to previous years. 
The result for the first quarter includes a non-taxable effect on results from remeasurement of 
associates of SEK 999 m (0). Excluding this effect on results the tax rate for the quarter is 
24 percent. 
  
SEK m 28 Feb - 2023 28 Feb - 2022 30 Nov - 2022
Accounts recievable 2,594 2,442 3,014
Stock-in-trade 41,040 39,331 42,495
Accounts payable -22,193 -22,916 -21,090
Operating working capital 21,441 18,857 24,419
Year
Commercial
 papers
Bonds 
(EMTN)
Loans from
 credit institutions
Unused credit
facilities
2023 720 - 2,386 -
2024 - - 250 -
2025 - - - 3,306
2026 - - 2,000 -
2027 - - - 14,327
2028 - - - -
2029 - 5,510 - -
Total SEK m 720 5,510 4,636 17,633

===== SIDA 9 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
9 
Current quarter 
The spring collections have been well received where the weather has warmed up. The start of 
the spring season has been delayed in many important markets as a result of cold weather. For 
the period 1–31 March 2023 sales in local currencies are expected to increase by 4 percent 
compared with the same period last year. 
Accounting principles 
The group applies International Financial Reporting Standards (IFRS) and interpretations by the 
IFRS Interpretations Committee as adopted by the EU. This report has been prepared 
according to IAS 34 Interim Financial Reporting, the Swedish Financial Reporting Board’s 
Recommendation RFR 1 Supplementary Rules for Consolidated Financial Statements and the 
Swedish Annual Accounts Act. 
The parent company applies the Swedish Annual Accounts Act and the Swedish Financial 
Reporting Board’s recommendation RFR 2 Accounting for Legal Entities, which essentially 
involves applying IFRS. 
The accounting principles and calculation methods applied in this report are unchanged from 
those used in the preparation of the annual and sustainability report and consolidated financial 
statements for 2022. No new or revised IFRS standards or interpretations applied from 1 December 
2022 have had any significant impact on the consolidated financial statements. 
For a more detailed description of the accounting principles applied to the group and the 
parent company in this interim report, see the notes of the annual and sustainability report for 
the 2022 financial year. 
Financial instruments  
The H&M group’s financial instruments consist mainly of shares and interests, accounts 
receivable, other receivables, cash and cash equivalents, accounts payable, interest-bearing 
securities and liabilities, and currency derivatives. 
Measurement principles and classification of financial instruments are unchanged from the 
information disclosed in note 21 in the annual and sustainability report for 2022.  
Currency derivatives are measured at fair value based on level 2 inputs in the IFRS 13 hierarchy. 
As of 28 February 2023, forward contracts with a positive market value amount to SEK 604 m 
(2,270), which is reported under other current receivables. Forward contracts with a negative 
market value amount to SEK 920 m (508), which is recognised in other current liabilities.  
Shares are measured at fair value, either through profit or loss or through other comprehensive 
income. Where holding of shares are assessed to be strategic, the H&M group has chosen to 
recognise changes in value in other comprehensive income. The valuation of the holding in 
Renewcell is based on the share price, which is a level 1 input according to IFRS 13,  and the fair 
value amounts to SEK 363 m (482) as of 28 February 2023. The fair value of the remaining 
shares and interests is based on level 3 inputs according to IFRS 13 and amounts to SEK 2,342 
m (3,781) as of 28 February 2023, the largest investments being Instabee at SEK 709 m (377), 
Sheertex at SEK 526 m (31) and Klarna at SEK 456 m (2,939). The effect of measurement of the 
group’s other shares and interests is reported in other comprehensive income and amounts to 
SEK -8 m (-394) for the first quarter. 
Other financial assets and liabilities are measured at amortised cost. Liabilities to credit 
institutions accrue interest at rates which essentially correspond to current market rates. The 
fair values of these and other financial instruments are therefore assessed to be approximately 
equal to their book values.

===== SIDA 10 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
10 
Risks and uncertainties  
Risks may be due to events in the outside world and affect a certain sector or market, or they 
may be associated with the group’s own business. The H&M group carries out regular risk 
analysis for both operational and financial risks. Operational risks are mainly associated with the 
business and the external risks that affect the group. Business decisions determine whether 
action is to be taken to reduce the likelihood of the risk in question occurring and if so, to what 
extent. Business decisions also determine the extent to which the consequences of a risk that 
has occurred may be mitigated.  
There are external risks and uncertainties affecting the H&M group that are related to the shift 
in the industry, fashion, competitors, logistics resources, information security and cybersecurity, 
sustainability issues, weather, macroeconomics and geopolitical events, pandemics, foreign 
currencies, taxes, customs duty, and various regulations and ordinances, but also in connection 
with expansion into new markets, the launch of new concepts and how the brands are 
managed. More detailed information concerning the financial risks is given in the H&M group’s 
annual and sustainability report. 
Information concerning exposure to Russia, Belarus and Ukraine 
On 24 February 2022 the H&M group paused sales in Ukraine as a consequence of Russia’s 
invasion. 
On 2 March 2022 all sales in Russia and Belarus were also paused. On 18 July 2022 the H&M 
group announced that it had decided to begin winding down the business in Russia in a 
responsible manner. By 30 November 2022 all of the H&M group’s 172 stores in Russia had 
been permanently closed. The business in Belarus, where there were three stores, had also 
been wound down at this date. 
There was no effect on earnings in the first quarter as a result of winding down these 
operations. Cash flow in the quarter was negatively impacted by outgoing payments of around 
SEK 600 m relating to the costs of winding down the business. 
The company is monitoring developments in Ukraine closely. The safety of colleagues and 
customers always has highest priority. The hope is to be able to reopen the H&M group’s 
operations in the country as soon as this is possible.

===== SIDA 11 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
11 
Initiatives for an improved customer experience 
Customer behaviour is changing rapidly, and the H&M group works continually on 
improvements in order to offer customers the best possible experience. Here are some 
examples of ongoing initiatives: 
• H&M’s customer loyalty programme rewards members not only for purchases, but also for 
their commitment – such as bringing in old clothes for H&M’s garment collecting and using 
their own bag when shopping in store. Members also receive personal offers and digital 
services for inspiration and an easy shopping experience. 
• More payment options. H&M Members can pay now or later through the H&M app, whether 
shopping in store or online.  
• Digital receipts are offered to customers in the H&M app so they can keep track of their 
receipts in one place and refer to their past purchases easily and accessibly. Available in 
most markets.  
• Visual Search. Image recognition provides recommendations and suggestionsfor styling and 
matching items based on pictures customers have taken and are been inspired by. 
• Next day delivery and express delivery continue to be rolled out in more markets.  
• Preferred delivery options. In some selected markets, customers can opt to receive and 
return items using a bicycle delivery service, that is much appreciated by customers. 
Combined with using biogas vehicles from the logistics centre to the bicycle delivery service, 
this reduces greenhouse gas emissions compared to conventional delivery options. Other 
preferred delivery options are offered in different markets, and they continue to be rolled 
out. 
• Find in store On seeing an item online, customers can use their mobile to find it quickly and 
easily in the size they want in a physical store as well as online.  
• Scan & buy. Customers can scan the QR code on a product in store to find and buy the item 
online in the size and colour they want.  
• Click & collect allows customers to pick up online purchases in store.  
• Online returns in store allows customers to return online purchases in physical stores.  
• #HMxME enables customers to share their own personal style as stories on Instagram. 
Customers can shop directly from their feed.  
• Rate & review allows customers to rate and review their purchases.  
• RFID (Radio Frequency Identification) is used to help customers locate items with a digital 
price tag quickly and easily to get real-time information on an item’s availability.  
• Self-service checkouts have been much appreciated by customers and are being rolled out 
to more markets. 
• Instagram. In the US, H&M customers can shop directly from Instagram posts and reels and 
receive notifications when H&M releases new collections.  
• Rental in store offers customers the opportunity to rent garments. Available in selected H&M 
stores in the UK, the Netherlands, Sweden and Germany.  
• Styleboard. Members in selected markets can create their own moodboard in the H&M app 
and shop directly from it. Customers can also add items from brands outside the H&M 
universe.  
• Personalised start page on hm.com offers a customised welcome page when customers visit 
the site in a few markets. They are offered tailor-made inspiration and suggestions based on 
individual style preferences.  
• Smart mirrors in fitting rooms in the US. Mirrors that recognise products brought inside the 
fitting room and offer personalised product and styling recommendations, or additional sizes 
and colours.  
• Buy online, pick-up in store allows customers in the US to shop online from the assortment in 
a selected number of physical stores and pick up the purchase in store. 
• Digital returns Customers in the US, UK, Canada and India can register their H&M returns 
online or through the H&M app without having to fill out paper forms in the parcel.

===== SIDA 12 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
12 
Product flow  
The H&M group is continuing to fully integrate the channels in an omni model. An important 
part of this is the group’s logistics systems and investments within tech and AI. Several 
initiatives involving new highly automated logistics centres with a focus on innovation are in 
progress globally. This will create additional capacity, flexibility and speed between sales 
channels as well as improved availability. 
The new highly automated logistics centre in Ajax, Canada is preparing for its opening in April 
2023. This will supplement the logistics centres opened on the US East and West Coasts and 
will create further capacity for the H&M group’s continued expansion in North America. A new 
logistics centre for online sales has recently been taken into operation in New Delhi, India. 
Preparations continue for the planned logistics centre in the Czech Republic. 
Sustainability  
The H&M group’s sustainability vision is to lead the change to a circular fashion industry with 
net zero climate impact, while being a fair and equal company. More detailed information about 
the group’s sustainability work can be found in the Sustainability Disclosure 2022 p ublished 
today at hmgroup.com. Some sustainability-linked highlights from 2022 and the last quarter 
include: 
• 84 percent of all our materials are either recycled or sourced in a more sustainable way. This 
figure includes a share of 23 percent recycled materials, taking us closer to our goal of 
30 percent by 2025. 
• We achieved an absolute reduction of 7 percent in scope 3 greenhouse gas emissions and an  
8 percent absolute reduction in scopes 1 and 2 compared to the 2019 baseline – contributing 
to our target to reduce absolute scope 1, 2 and 3 emissions by 56 percent by 2030. 
• The H&M group achieved a CDP rating of A– in the climate module based on the scope of 
reporting on environmental topics and performance in relation to this. 
• The company’s climate goals were verified by the Science Based Targets initiative (SBTi). 
The ambition is to achieve net zero greenhouse gas emissions by 2040 and to reduce scope 
1, 2 and 3 GHG emissions by 56 percent in absolute terms by 2030. 
• We have achieved a 44 percent reduction in plastic packaging compared to the 2018 
baseline. 
• The H&M group launched a new water strategy for 2030 and reduced total water 
consumption in the supply chain by 38 percent compared to the 2017 baseline through 
efficiency improvements and increased wastewater recycling. 
Environmental and climate organisation Stand.earth’s recent Fashion Scorecard ranked the 
H&M group highest out of a total of 43 fashion brands. This was based on efforts to eliminate 
fossil fuels within production, materials and shipping. 
In support of the H&M group’s overall climate goals the ambition is to buy 100 percent 
renewable electricity in the group’s own operations and in the supply chain by 2030. 
Agreements have been signed with developers of new solar parks to secure access to 
renewable energy for many years to come. 
 
Read more about many of the initiatives above and the group’s sustainability work in the latest H&M Group Annual and 
Sustainability Report and at hmgroup.com.

===== SIDA 13 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
13 
Calendar 
4 May 2023 Annual general meeting at 15:00 (CEST), Erling Persson Hall, 
Aula Medica, Karolinska Institutet in Solna 
15 June 2023 Sales development in the second quarter, 1 Mar 2023 – 31 May 2023 
29 June 2023 Six-month report, 1 Dec 2022 – 31 May 2023 
15 September 2023 Sales development in the third quarter, 1 Jun 2023 – 31 Aug 2023 
28 September 2023 Nine-month report, 1 Dec 2022 – 31 Aug 2023 
15 December 2023 Sales development in the fourth quarter, 1 Sep 2023 – 30 Nov 2023 
31 January 2024 Full-year report, 1 Dec 2022 – 30 Nov 2023 
 
 
Stockholm, 29 March 2023 
Board of Directors 
Communication in conjunction with the three-month report 
The three-month report, i.e., 1 December 2022 – 28 February 2023, will be published at 08:00 
CEST on 30 March 2023, followed by a telephone conference at 09:00 CEST for the financial 
market and media. The telephone conference will be held in English, hosted by CEO Helena 
Helmersson, CFO Adam Karlsson and Head of IR Nils Vinge. 
For log in details for the telephone conference please register on hmgroup.com or via this link: 
https://app.webinar.net/ELXv5NR5P84 
To book interviews in conjunction with the three-month report on 30 March 2023, please 
contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, 
anna.froschnordin@hm.com.. 
Contact  
Nils Vinge, Head of IR  +46 8 796 52 50  
Helena Helmersson, CEO  +46 8 796 55 00 (switchboard)  
Adam Karlsson, CFO  +46 8 796 55 00 (switchboard) 
H & M Hennes & Mauritz AB (publ)  
SE-106 38 Stockholm  
Phone: +46-8-796 55 00, e-mail: info@hm.com  
Registered office: Stockholm, Reg. No. 556042-7220 
For more information about the H&M group visit hmgroup.com. 
 
 
 
 
 
 Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) 
No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CEST) on 30 March 2023. This interim report 
and other information about the H&M group, is available at hmgroup.com. 
 
 
H & M Hennes & Mauritz AB (publ) was founded in Sweden in 1947 and is quoted on Nasdaq Stockholm. H&M’s business idea is to offer fashion an d quality at the best price in a 
sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, & Other St ories, H&M HOME, ARKET and Afound  as well as Sellpy. For further 
information, visit hmgroup.com.

===== SIDA 14 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
14 
 
Q1  2023 Q1  2022 1 Dec 2021-  
30 Nov 2022 
Net sales 54,872 49,166 223,553
Cost of goods sold* -28,986 -24,906 -110,183
GROSS PROFIT 25,886 24,260 113,370
Gross margin, % 47.2 49.3 50.7
Selling expenses -23,108 -21,061 -94,542
Administrative expenses* -3,052 -2,741 -11,390
Result from investments in associated companies and joint ventures* 999 - -269
OPERATING PROFIT 725 458 7,169
Operating margin, % 1.3 0.9 3.2
Net financial items -329 -176 -953
PROFIT AFTER FINANCIAL ITEMS 396 282 6,216
Tax 144 -65 -2,650
PROFIT FOR THE PERIOD 540 217 3,566
Attributable to:
The shareholders of H & M Hennes & Mauritz AB 541 217 3,566
Non-controlling interest -1 - -
Earnings per share, SEK** 0.33 0.13 2.16
Average number of shares outstanding, thousands** 1,629,687 1,655,072 1,649,847
Depreciation and amortisation / write-downs, total*** 5,505 5,393 22,579
   of which cost of goods sold 417 383 1,709
   of which selling expenses 4,810 4,806 19,928
   of which administrative expenses 278 204 942
** Before and after dilution, excluding own shares.
*** Of which write-downs and losses at disposals SEK 93 m (152).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME IN SUMMARY (SEK m)
Q1  2023 Q1  2022 1 Dec 2021-  
30 Nov 2022 
PROFIT FOR THE PERIOD 540 217 3,566
Other comprehensive income
Items that are or may be reclassified to profit or loss
Translation differences -135 1,033 3,902
Change in hedging reserves 669 -282 -478
Tax attributable to change in hedging reserves -138 58 87
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit pension plans 7 84 55
Tax related to the above remeasurement -1 -19 -9
Remeasurement of financial assets -8 -394 -2,697
OTHER COMPREHENSIVE INCOME 394 480 860
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 934 697 4,426
Attributable to:
The shareholders of H & M Hennes & Mauritz AB 935 697 4,426
Non-controlling interest -1 - -
GROUP INCOME STATEMENT IN SUMMARY (SEK m)
* For the 2021/2022 financial year, SEK 93 m and SEK 176 m respectively have been reallocated from cost of goods sold and 
administrative expenses respectively to result from investments in associated companies and joint ventures. Result from investments in 
associated companies and joint ventures in Q1 2023 relates to revaluation of associated companies of which mainly the former 
associated company Sellpy.

===== SIDA 15 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
15 
 
 
 
 
  
GROUP BALANCE SHEET IN SUMMARY (SEK m)
ASSETS
28 Feb - 2023 28 Feb - 2022 30 Nov - 2022
Non-current assets
Intangible non-current assets 10,550 9,416 9,156
Property, plant and equipment 23,765 25,774 24,431
Right-of-use assets 57,303 55,244 58,305
Non-current financial assets 2,831 4,950 3,157
Other non-current assets 7,357 6,741 7,476
101,806 102,125 102,525
Current assets
Stock-in-trade 41,040 39,331 42,495
Current receivables 15,333 16,404 15,321
Cash, cash equivalents and short-term investments 21,290 27,403 21,707
77,663 83,138 79,523
TOTAL ASSETS 179,469 185,263 182,048
EQUITY AND LIABILITIES
Equity* 51,780 60,715 50,757
Long-term liabilities** 13,929 13,525 13,674
Long-term leasing liabilities** 48,947 47,274 49,282
Current liabilities*** 52,781 51,909 55,760
Current leasing liabilities*** 12,032 11,840 12,575
TOTAL EQUITY AND LIABILITIES 179,469 185,263 182,048
CHANGE IN GROUP EQUITY IN SUMMARY (SEK m) 
28 Feb - 2023 28 Feb - 2022 30 Nov - 2022
Shareholders' equity at the beginning of the period 50,757 60,018 60,018
Total comprehensive income for the period  934 697 4,426
Non-controlling interest that has arisen from acquisitions 89 - -
Dividend - - -10,687
Repurchase of shares - - -3,000
Shareholders' equity at the end of the period 51,780 60,715 50,757
**  Interest-bearing long-term liabilities including leasing amounts to SEK 59,255 m (57,067), excluding leasing SEK 10,308 m (9,793) of which provisions for 
pensions SEK 343 m (347).
*** Interest-bearing current liabilities including leasing amounts to SEK 12,933 m (12,351), excluding leasing SEK 901 m (511).
* Equity attributable to the shareholders of H & M Hennes & Mauritz AB amounts to SEK 51,692 m (60,715) and to non-controlling interests SEK 88 m (0).

===== SIDA 16 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
16 
  
Q1 - 2023 Q1 - 2022
Operating activities 
Profit after financial items* 396 282
Adjustment for non-cash items
- Provisions for pensions 18 -5
- Depreciation and amortisation / write-downs 5,505 5,393
- Other non-cash items -999 -
Taxes paid -249 -1,108
Cash flow from operating activites before changes in working capital 4,671 4,562
Changes in working capital
Operating receivables -409 -586
Stock-in-trade 1,482 -1,574
Operating liabilities -758 1,222
CASH FLOW FROM OPERATING ACTIVITIES 4,986 3,624
Investing activities
Investments in intangible fixed assets -337 -280
Investments in tangible fixed assets -1,227 -576
Other -79 -226
CASH FLOW FROM INVESTING ACTIVITIES -1,643 -1,082
Financial activities
Change in interest-bearing liabilities 19 71
Amortisation lease -3,124 -2,887
CASH FLOW FROM FINANCIAL ACTIVITIES -3,105 -2,816
CASH FLOW FOR THE PERIOD 238 -274
Cash and cash equivalents at beginning of the financial year 21,707 27,471
Cash flow for the period 238 -274
Exchange rate effect -655 206
Cash and cash equivalents at end of the period** 21,290 27,403
** Cash and cash equivalents and short-term investments at the end of the period amounted to SEK 21,290 m (27,403).
GROUP CASH FLOW STATEMENT IN SUMMARY (SEK m)
*  Interest paid for the group amounts to SEK 74 m (61). Interest expense related to leases amounts to SEK 338 m (193) for the group.
   Received interest for the group amounts to SEK 83 m (78).

===== SIDA 17 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
17 
 
FIVE YEAR SUMMARY
Q1, 1 December - 28 February
2019* 2020 2021 2022 2023
Net sales, SEK m 51,015 5 4,948 40,060 49,166 54,872
Change net sales from previous year in SEK, % 10 8 -27 23 12
Change net sales previous year in local currencies, % 4 5 -21 18 3
Operating profit, SEK m 1,005 2,690 -1,128 458 725
Operating margin, % 2.0 4. 9 -2.8 0.9 1.3
Depreciation and amortisation / write-downs for the period, SEK m 2,677 6,397 5,712 5,393 5,505
Profit after financial items, SEK m 1,043 2, 504 -1,389 282 396
Profit after tax, SEK m 803 1,928 -1,070 217 540
Cash and cash equivalents and short-term investments, SEK m 11,851 11,972 17,304 27,403 21,290
Stock-in-trade, SEK m 39,968 37 ,201 36,978 39,331 41,040
Equity, SEK m 60,042 59,237 53,390 60,715 51,780
Average number of shares outstanding, thousands** 1,655,072 1,655,072 1,655,072 1,655,072 1,629,687
Earnings per share, SEK** 0.49 1. 16 -0.65 0.13 0.33
Cash flow from operating activities
per share, SEK** 1.11 4.13 3.59 2.19 3.06
Number of shares outstanding as of the closing day, thousands** 1,655,072 1 ,655,072 1,655,072 1,655,072 1,629,687
Equity per share, SEK** 36.28 35.79 32.26 36.68 31.77
Share of risk-bearing capital, % 53.1 34.1 33.7 34.8 30.7
Equity/assets ratio, % 49.4 3 1.7 31.4 32.8 28.9
Total number of stores 4,958 5,053 4,949 4,721 4,414
Rolling twelve months 
Average number of shares outstanding, thousands** 1,655,072 1,655,072 1,655,072 1,655,072 1,643,587
Earnings per share, SEK** 7 .30 8.80 -1.06 7.43 2.37
Return on equity, % 19.8 24.4 -3.1 21.6 6.9
Return on capital employed, % 20.3 17.1 -0.4 13.1 6.0
*    Excluding IFRS 16.
**   Before and after dilution, excluding own shares. 
For definitions and explanations of the alternative performance measures in this report, see page 147-149 in the annual and sustainability report for the 2022 financial year.

===== SIDA 18 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
18 
 
 
 
SEGMENT REPORTING (SEK m)
Q1 - 2023 Q1 - 2022
Asia and Oceania
External net sales 7,520 7,034
Operating profit -221 66
Operating margin, % -2.9 0.9
Europe and Africa*
External net sales 33,827 31,204
Operating profit -209 -787
Operating margin, % -0.6 -2.5
North and South America
External net sales 13,525 10,928
Operating profit 109 140
Operating margin, % 0.8 1.3
Group Functions
Net sales to other segments 17,092 14,405
Operating profit 1,046 1,039
Eliminations
Net sales to other segments -17,092 -14,405
Total
External net sales 54,872 49,166
Operating profit 725 458
Operating margin, % 1.3 0.9
Net financial items -329 -176
Profit after financial items 396 282
* South Africa

===== SIDA 19 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
19 
 
 
 
  
PARENT COMPANY INCOME STATEMENT IN SUMMARY (SEK m)
Q1
2023 
Q1
2022 
1 Dec 2021-
30 Nov 2022 
Net sales 529 906 4,024
GROSS PROFIT 529 906 4,024
Administrative expenses -21 -39 -97
OPERATING PROFIT 508 867 3,927
Net financial items* -46 -11 8,937
PROFIT AFTER FINANCIAL ITEMS 462 856 12,864
Year-end appropriations - - -3,139
Tax -94 -176 -149
PROFIT FOR THE PERIOD 368 680 9,576
Q1
2023 
Q1
2022 
1 Dec 2021-
30 Nov 2022 
PROFIT FOR THE PERIOD 368 680 9,576
Other comprehensive income
Items that have not been and will not be reclassified to profit or 
loss
Remeasurement of defined benefit pension plans 0 6 20
Tax related to the above remeasurement 0 -1 -4
OTHER COMPREHENSIVE INCOME 0 5 16
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 368 685 9,592
* Revenue from interests in group companies in the quarter consists of SEK 0 m (0) .
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK m)

===== SIDA 20 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
20 
  
PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK m)
28 Feb - 2023 28 Feb - 2022 30 Nov 2022
ASSETS
Non-current assets
Property, plant and equipment 152 168 156
Other non-current assets 1 ,374 1,448 1,072
1,526 1,616 1,228
Current assets
Current receivables 25,775 30,270 26,095
Cash and cash equivalents 3 0 2
25,778 30,270 26,097
TOTAL ASSETS 27,304 31,886 27,325
EQUITY AND LIABILITIES
Equity 16,672 21,084 16,304
U
ntaxed reserves 21 32 21
Long-term liabilities* 9,349 9,371 9,349
Current liabilities** 1,262 1,399 1,651
TOTAL EQUITY AND LIABILITIES 27,304 31,886 27,325
* All long-term liabilities are interest-bearing.
** Interest-bearing current liabilities amounts to SEK 720 m (500).

===== SIDA 21 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
21 
ALTERNATIVE PERFORMANCE MEASURES 
For other alternative performance measures see page 147-149 in the annual and sustainability report for the 2022 financial year. 
 
  
Gross profit excl IFRS 16
Q1 - 2023 Q1 - 2022
Gross profit 25,886 24,260
IFRS 16 effect -20 -19
Gross profit excl IFRS 16 25,866 24,241
Definition: Gross profit adjusted with the effect from IFRS 16.
Reason for use: To create comparability in analyses where years prior to IFRS 16 are included.
Operating profit excl IFRS 16
Q1 - 2023 Q1 - 2022
Operating profit 725 458
IFRS 16 effect -372 -250
Operating profit excl IFRS 16 353 208
Definition: Operating profit adjusted with the effect from IFRS 16.
Reason for use: To create comparability in analyses where years prior to IFRS 16 are included.
Net financial items excl IFRS 16
Q1 - 2023 Q1 - 2022
Net financial items -329 -176
IFRS 16 effect 338 193
Net financial items excl IFRS 16 9 17
Definition: Net financial items adjusted with the effect from IFRS 16.
Reason for use: To create comparability in analyses where years prior to IFRS 16 are included.
Profit after financial items excl IFRS 16
Q1 - 2023 Q1 - 2022
Profit after financial items 396 282
IFRS 16 effect -34 -57
Profit after financial items excl IFRS 16 362 225
Definition: Profit after financial items adjusted with the effect from IFRS 16.
Reason for use: To create comparability in analyses where years prior to IFRS 16 are included.
Profit for the period excl IFRS 16
Q1 - 2023 Q1 - 2022
Profit for the period 540 217
IFRS 16 effect -25 -44
Profit for the period excl IFRS 16 515 173
Definition: Profit for the period adjusted with the effect from IFRS 16.
Reason for use: To create comparability in analyses where years prior to IFRS 16 are included.

===== SIDA 22 =====

Three-month report 2023 (1 Dec 2022 – 28 Feb 2023) 
 
22 
Note 1 Acquisitions 
As a result of contractual changes, without paying any additional purchase consideration the H&M group obtained a 
controlling interest in its former associate Sellhelp AB as of 9 December 2022. As of the contract date the H&M group 
owned 79.84 percent of the shares in the company. Sellhelp AB has developed a platform – Sellpy – for second-hand 
products. The investment contributes to the H&M group’s initiatives for sustainability and circular business models.  
Before the date of the contractual changes the book value of the H&M group’s interest in Sellhelp AB amounted to 
SEK 269 m. Obtaining a controlling interest has resulted in a reported gain of SEK 1,107 m based on a fair value for the H&M 
group’s interest of SEK 1,376 m. The gain is reported on the line “Result from investments in associated companies and joint 
ventures” in the consolidated income statement and has no effect on cash flow. The interest in Sellhelp AB has been valued 
using a combined estimate from two valuation methods: one in which relevant multiples from similar companies have been 
applied to the company’s key ratios and one based on historical majority transactions in the same industry. 
Sellhelp AB’s operations are being consolidated into the H&M group’s accounts with effect from the first quarter of 2023 
based on the acquired balance sheet and a preliminary acquisition analysis. Obtaining a controlling interest gives rise to 
intangible assets such as brands and goodwill. Recognised goodwill is not expected to be tax-deductible. Sellhelp AB’s 
operations contributed SEK 241 m and SEK –3 m respectively to the group’s net sales and operating profit. The operations 
are included in the “Europe and Africa” segment. 
During the current financial year the H&M group has incurred no transaction costs related to obtaining the controlling 
interest in Sellhelp AB.