FULLTEXT DEL 1 AV 1

Kvartalsrapport Q1 2024

Dokumentindex

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

General Information

H & M Hennes & Mauritz AB
Three-month report
2024

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

H & M Hennes & Mauritz AB
Three-month report 2024
FIRST QUARTER (1 DECEMBER 2023 – 29 FEBRUARY 2024)
– The H&M group’s net sales amounted to SEK 53,699 m (54,872).
– Gross profit increased by 7 percent to SEK 27,655 m (25,886). This corresponds to a gross margin of 51.5 percent (47.2).
– Operating profit amounted to SEK 2,077 m (725), corresponding to an operating margin of 3.9 percent (1.3). Adjusted for
result from investments in associated companies and joint ventures of SEK -14 m (999) the operating profit amounted to
SEK 2,091 m (-274), corresponding to an improvement in profit of SEK 2,365 m.
– The result after tax increased to SEK 1,201 m (540), corresponding to SEK 0.75 (0.33) per share.
– Cash flow from operating activities amounted to SEK 3,967 m (4,986).
– Financial net cash amounted to SEK 6,585 m (10,424). Cash and cash equivalents plus undrawn credit facilities were SEK
38,710 m (38,923).
– Currency adjusted the stock-in-trade decreased by 7 percent compared with the previous year. Converted into SEK the
stock-in-trade decreased by 8 percent to SEK 37,630 m (41,040). The stock-in-trade in SEK represented 16.0 percent
(17.9) of rolling 12-month sales.

– The H&M group’s sales in the period 1 – 25 March 2024 increased by 2 percent in local currencies compared with the
same period the previous year.
– As previously communicated, the H&M group and Vargas Holding have co-founded Syre, which aims to rapidly scale
textile-to-textile recycling of polyester and contribute to a more sustainable textile industry.
– Today the H&M group publishes its annual and sustainability report 2023. Among other things, the report shows a 22
percent reduction in greenhouse gas emissions in 2023. In relation to sales in SEK the decrease was 23 percent.*
– The annual general meeting will be held on 3 May 2024 to resolve, among other things, on the board’s proposed dividend
of SEK 6.50 per share, to be paid in two instalments, and on a general authorisation allowing the board to buy back the
group’s own B shares in the period up to the 2025 annual general meeting. This general authorisation is one of the tools
for the board to use if surplus liquidity is identified. If the annual general meeting authorises the board and the board
chooses to utilise this authority, amounts and other details will be communicated.

Operating profit
SEK 2.1 billion
(SEK 0.7 billion)

Gross margin
51.5%
(47.2%)

Stock-in-trade/Sales**
16.0%
(17.9%)

“Development continued in the right direction in the first quarter with an improved gross margin
and operating profit, lower inventory and strong cash flow. Our top priority is to continue improving
the customer offering, the store experience and the supply chain in order to increase sales.”

- Daniel Ervér, CEO.
* Refers to science-based targets for the company’s entire value chain in scope 3 and excludes the use of sold products. The baseline is 2019. By 2030 at the latest the
H&M group is to reduce its scope 1, 2 and 3 greenhouse gas emissions by 56 percent.
** Stock-in-trade in SEK as a share of rolling 12 months sales.

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

Comments by Daniel Ervér, CEO
We have a fantastic position with billions of visits a year
to our physical and digital stores. We have more than 200
million customers in our loyalty programme, in a global
market that external market analysts expect to grow by
more than 5 percent a year up to 2028. With our long-
term and high ambitions for a sustainable fashion industry,
I am pleased and humbled to be entrusted with leading
the H&M group.
In the first quarter we continued to take steps in the right
direction, with a gross margin of 51.5 percent, a substantial
improvement in operating profit to SEK 2.1 billion, inventory
down by 7 percent and continued strong cash flow. Through
continued cost control, better precision in our collections
and close cooperation with our suppliers, we now stand
better equipped.
We are fully focused on driving profitable growth going
forward. Our stronger gross margin enables us to enhance
the customer offering further and provide more value for
money through improved quality and better prices. We are
strengthening all parts of our assortment and our design
organisation’s most important mission is to create attractive
collections. The upgrading of our stores is being accelerated,
for added inspiration and relevance to customers. We are
refurbishing around 250 stores globally in 2024, including in
New York, London, Berlin and Stockholm. As we reported
previously, we are also continuing to simplify our
organisation to make it more efficient and faster. Other
examples of ongoing improvements include increased
nearshoring and enhanced efforts in digitalisation and AI,
enabling customers to access the most relevant fashion
each time they meet with us. The quarter’s sales gradually
improved during February with well-received Spring
collections, which is a positive sign that we are on the
right track.
The main focus for me and all my colleagues is on creating
the best offering for our customers. Our priorities remain
firm: to enhance the assortment, always offer the best price,
create inspiring experiences in both physical and digital
environments, and to strengthen our brands. Thanks to the
investments being made in tech, the supply chain and
sustainability, combined with continued cost control,
committed colleagues and a long-term perspective, we see
good opportunities for profitable and sustainable growth.
Today the H&M group’s annual and sustainability report is
being published, which details our progress in areas such as
increased use of sustainable materials and reduced climate
impact. To achieve our ambitious climate goals we are
investing, for example, in projects for transition to renewable
energy among our suppliers and within innovation. We have
co-founded the recently launched Syre, which aims to
rapidly scale a circular model for polyester recycling.
We continue to plan our business with respect for a
challenging situation in the world around us where
consumers remain affected by inflation and high interest
rates. In this situation our customer offering is more relevant
than ever. Our top priority is to strengthen sales, and our
target of a 10 percent operating margin for full-year 2024
thus remains in place.
* For own operations (scope 1 & 2) and for the rest of our value chain (scope 3) and
excluding use of sold products.

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

SALES

The H&M group’s net sales in the first quarter amounted to SEK 53,669 m (54,872). Net sales decreased by
2 percent in local currencies compared with the corresponding quarter last year.
Around 30 percent of sales are online.
Net sales for Portfolio brands in the first quarter increased by 8 percent in SEK and by 8 percent
in local currencies.
SALES PER REGION, FIRST QUARTER

54,872 53,669
Δ - 2%
0
20,000
40,000
60,000
Q1
2023
2024
SEK m
SEK m SEK m SEK
LOCAL
CURRENCY
NEW
STORES
(NET)
2024 2023 2024 29 FEB 24 28 FEB 23
The Nordics 4,673 4,842 -3 -2 -4 385 394
Western Europe 17,295 17,558 -1 -4 -15 1,036 1,065
Eastern Europe 4,581 4,081 12 8 0 475 478
Southern Europe 6,884 7,047 -2 1 -7 601 619
North and South America 12,728 13,526 -6 -7 0 745 738
Asia, Oceania and Africa 7,508 7,818 -4 0 -5 1,096 1,120
Total 53,669 54,872 -2 -2 -31 4,338 4,414
CHANGE IN %
NUMBER OF STORES

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

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 by 7 percent to SEK 27,655 m (25,886) for the first quarter, corresponding to a gross margin
of 51.5 percent (47.2).
The improvement work in the supply chain, the cost and efficiency programme and continued normalisation of the
external factors that influence purchasing costs resulted in a stronger gross margin in the first quarter 2024.
The cost of markdowns in relation to sales in the first quarter 2024 was around half a percentage point higher
compared with the corresponding quarter the previous year.
For the goods that will be sold in the second quarter of 2024, the overall effect of external factors is expected to be
positive compared with the previous year.
SELLING AND ADMINISTRATIVE EXPENSES

Selling and administrative expenses decreased in the first quarter by 2 percent to SEK 25,564 m (26,160). In local
currencies these expenses decreased by 3 percent.
This development is made possible by good operational cost control combined with the cost and efficiency
programme that was initiated during the fourth quarter 2022. The programme’s actions had already started to have
an effect from the second quarter of 2023 and in the first half of 2024 the remaining parts of the cost and
efficiency programme are being implemented. The programme is expected to result in annual savings of around
SEK 2 billion once fully implemented.
25,886 27,655
51.5%47.2%
0
10,000
20,000
30,000
Q1
2023
2024
SEK m
26,160 25,564
Δ - 2%
0
10,000
20,000
30,000
Q1
2023
2024
SEK m

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

OPERATING PROFIT AND OPERATING MARGIN

Operating profit in the first quarter amounted to SEK 2,077 m (725), corresponding to an operating margin of
3.9 percent (1.3). The strong gross margin, the cost and efficiency programme, and good operational cost control
all had a positive impact on operating profit.
The result for the first quarter 2023 included a non-taxable effect on earnings of SEK 999 m from revaluation
of associated companies, consisting mainly of a one-time effect from the revaluation of the former associated
company Sellpy. Adjusted for income from investments in associated companies and joint ventures of SEK -14 m
(999), operating profit amounted to SEK 2,091 m (-274), which corresponds to an improvement in earnings of
SEK 2,365 m.
STOCK-IN-TRADE

Currency adjusted the stock-in-trade decreased by 7 percent compared with the previous year. Converted into SEK
the stock-in-trade decreased by 8 percent to SEK 37,630 m (41,040).
The composition of the stock-in-trade is assessed to be good.
The stock-in-trade in SEK represented 16.0 percent (17.9) of rolling 12 months sales.
The investments in the supply chain and the integration of the sales channels continue. With a higher share of
nearshoring, a more efficient and more flexible supply chain and more purchasing in season, the group is well
placed for continued improvement of the stock-in-trade situation.

725
2,077
Δ + 186%
0
1,000
2,000
3,000
Q1
2023
2024
SEK m
41,040
37,630
Δ - 8%
0
20,000
40,000
28 Feb
2023
29 Feb
2024
SEK m

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

EXPANSION THROUGH INTEGRATED CHANNELS
Expansion is taking place with a focus on increased 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. In 2024 the company is stepping up the pace of investment in existing stores to provide an
even more inspiring experience while also securing our store portfolio for continued profitability and growth. For
example, around 250 stores globally are being refurbished, which is a significant increase compared to last year.
H&M is opening its first store in the Dominican Republic via franchise in 2024. In the first quarter of 2024 Arket was
launched in Latvia, and Arket will continue its expansion by opening stores in Ireland, Poland, Spain and Italy in 2024.
& Other Stories will open during the year on About You marketplace, which serves around 25 markets in Europe.
The H&M group is continuing to renegotiate a large number of leases, which also involves rebuilds, adjustment of
the number of stores and of store space to ensure it has 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 2024 the plan is to open around
100 new stores and close around 160 stores, making a net decrease of around 60 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 29 February 2024 the H&M group had 4,338 (4,414) stores, i.e. the total number of stores has decreased by
76 stores compared with the same point in time the previous year, which corresponds to a reduction of
approximately 2 percent. During the current financial year 16 (7) new stores have opened and 47 (58) stores have
closed. A total of 272 (282) of the group’s stores are operated by franchise partners.

* Concept stores. H&M HOME is also available through shop-in-shop in 440 H&M stores.

COS, Monki, Weekday, & Other Stories and ARKET offer Global selling which enables customers in around 70 additional markets to shop online. The exac t
number of markets per brand that have this service varies.

STORE ONLINE
Q1 29 FEB 2024 28 FEB 2023
H&M -24 3,848 3,907 77 60
COS -4 241 254 47 38
Monki -2 62 74 15 29
Weekday -3 50 53 14 29
& Other Stories -1 71 69 25 32
ARKET 3 33 26 14 31
Afound 0 0 0 0 7
H&M HOME* 0 33 31 59 45
Sellpy 0 0 0 0 24
Total -31 4,338 4,414
NUMBER OF MARKETS
29 FEB 2024
2024 (NET) TOTAL NUMBER OF STORES
NEW STORES

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

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 amounted to SEK 3,967 m (4,986). Operating working
capital amounted to SEK 18,282 m (21,441).
Currency adjusted, inventory was down by around 7 percent compared with the previous year and contributed to a
SEK 3,159 m decrease in working capital compared with the previous year. Working capital amounted to 7.8 percent
(9.4) of rolling 12-month sales.

Liquidity and debt financing
The H&M group’s liquidity remains very good. As at 29 February 2024 cash and cash equivalents amounted to
SEK 20,822 m (21,290). In addition, the group has undrawn credit facilities of SEK 17,888 m (17,633). The total
liquidity buffer, i.e. cash and cash equivalents plus undrawn credit facilities, amounted to SEK 38,710 m (38,923).
Net debt including lease liabilities in relation to EBITDA amounted to 1.4 (1.7) with a net cash position of SEK 6,585 m
(10,424). Debt levels are at the lower end of the target range of 1.0 – 2.0 for the capital structure target
Net debt/EBITDA.
Interest-bearing liabilities in the form of commercial papers, bonds and loans from credit institutions amounted to
SEK 14,237 m (10,866) as at 29 February 2024. During the quarter interest-bearing liabilities of SEK 2,770 m net were
repaid, which extended the average maturity of interest-bearing liabilities to 5.8 (4.1) years.
A maturity analysis of outstanding interest-bearing liabilities and undrawn credit facilities as at 29 February 2024
is given in the table below.

SEK m 2024-02-29 2023-02-28 2023-11-30
Accounts receivable 2,290 2,594 3,301
Stock-in-trade 37,630 41,040 37,358
Accounts payable -21,638 -22,193 -21,027
Operating working capital 18,282 21,441 19,632
Year BONDS (EMTN)
LOANS FROM CREDIT
INSTITUTIONS
UNUSED CREDIT
FACILITIES
2024 - 437 -
2025 - - -
2026 - 2,000 3,354
2027 - - -
2028 - 263 -
2029 5,590 - 14,534
2030 - - -
2031 5,948 - -
Total SEK m 11,538 2,700 17,888

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

TAX
The group’s tax rate for the financial year 2023/2024 is expected to be 25 – 26 percent based on known
circumstances. For the first three quarters of the year a tax rate of 25 (24) percent is planned to be used to
calculate tax expense on the earnings in each period excluding result from investments in associated companies
and joint ventures. The final tax rate depends on, among other things, 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.
SHARE BUYBACKS
During the period 27 September 2023 – 1 March 2024 the group repurchased shares as authorised by the 2023
annual general meeting. In total 19,144,612 B shares were repurchased for a total sum of SEK 3 billion. It is intended
that the shares repurchased will be cancelled through a resolution at the 2024 annual general meeting.
CURRENT QUARTER
The H&M group’s sales in the period 1 – 25 March 2024 increased by 2 percent in local currencies compared with
the same period the previous year.
The cost of markdowns in relation to sales in the second quarter is expected to increase somewhat compared
with the corresponding quarter the previous year.
The company monitors developments in the Red Sea and act to minimise impact on the company’s product
availability, freight costs and stock levels.
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 cyber security, 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.

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

SUSTAINABILITY
The H&M group’s sustainability vision is to lead the change to a more sustainable and circular fashion industry. The
company’s size and reach mean it has a significant opportunity to influence the industry in general, and to scale up
the infrastructure and innovation required for this transformation. Today, the H&M group’s integrated annual and
sustainability report 2023 is published. More detailed information about the group’s sustainability work can be
found in the Sustainability Disclosure 2023 at hmgroup.com, which is also published today. Some sustainability-
linked highlights from 2023 and the last quarter include:
22 percent absolute reduction of greenhouse gas emissions in scope 3* compared to the 2019 baseline. The
decrease is a result of continued efforts in phasing out on-site coal, changes in supplier base, local policy and H&M
group pushing for increased electrification of steam production. By 2030 at the latest the H&M group is to reduce
its scope 1, 2 and 3 greenhouse gas emissions by 56 percent.
Climate Transition Plan. The plan is an important milestone in H&M Group’s climate efforts and describes its
ambitions to transform its value chain, guide strategic decisions, take action in the operations and drive the
company towards achieving its ambitious climate goals while also promoting sustainable innovation.
85 percent of all materials were recycled or sustainably sourced in 2023, taking the company closer to its goal
of 100 percent of the company’s materials being either recycled or sustainably sourced by 2030, including
30 percent recycled materials by 2025. The progress is largely due to the increased use of recycled polyester and
wool that meet the requirements of the Responsible Wool Standard.
Strengthened ambition level for recycled materials. H&M Group's new ambition is to achieve 50 percent
recycled materials by 2030. In 2023 the group reached a share of 25 percent recycled materials, including
79 percent recycled polyester, marking progress towards the goal of 100 percent recycled polyester by 2025. As
innovations within polyester recycling continue to make progress, the company is scaling up its use of textile-to-
textile recycled polyester in its products.
Investment in textile-to-textile recycled polyester. H&M group and Vargas Holding has co-founded Syre,
which will rapidly scale textile-to-textile recycling of polyester. Through Syre, the H&M group aims to contribute
to a circular shift in the industry by moving away from virgin polyester and bottle-to-textile polyester recycling,
known as rPET, towards a closed loop alternative. H&M Group has secured an offtake agreement with Syre worth
a total of USD 600 million over seven years, covering a significant share of the company’s long-term need for
recycled polyester.
Electricity intensity reduction. A 29 percent reduction in electricity intensity in stores per square metre and
opening hour from its 2016 baseline, exceeding the goal of 25 percent by 2030 seven years ahead of schedule and
contributing to reduce emissions in scopes 1 and 2.**
World’s Top Companies for Women. H&M Group ranked seventh out of 400 companies in the 2023 edition of
Forbes’ World’s Top Companies for Women list, taking the number one position in the Clothing and Shoes category.
H&M Group scored highest in the leadership category (number of women in management and on the board), where
the H&M group was ranked among the top 1 percent of all companies assessed in this category.
Remake's 2024 Fashion Accountability Report. H&M group scored second out of 52 brands assessed in
Remake's 2024 Fashion Accountability Report. Remake assesses some of the world's largest fashion companies in
the areas traceability, raw materials, wages and wellbeing, and commercial practices.

* Refers to science-based targets for the company's entire value chain in scope 3 and excludes the use of sold products.
** Scope 1 and 2 refers to science-based targets for the company’s own operations.

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 12 =====

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

CALENDAR
3 May 2024 Annual general meeting at 15:00 (CEST), Erling Persson Hall, Aula Medica, Solna
27 June 2024 Six-month report, 1 Dec 2023 – 31 May 2024
26 September 2024 Nine-month report, 1 Dec 2023 – 31 Aug 2024
30 January 2025 Full-year report, 1 Dec 2023 – 30 Nov 2024
Stockholm, 26 March 2024
Board of Directors
COMMUNICATION IN CONJUNCTION WITH THE THREE-MONTH REPORT
The three-month report, i.e., 1 December 2023 – 29 February 2024, will be published at 08:00 CET on 27 March
2024, followed by a telephone conference at 09:00 CET for the financial market and media. The telephone
conference will be held in English, hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.
For log in details for the three-month report telephone conference please register via this link:
https://app.webinar.net/Bo9xPemPy5G
To book interviews in conjunction with the three-month report on 27 March 2024, please contact: Anna Frosch
Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.
CONTACT
Joseph Ahlberg, Head of IR +46 73 465 93 92
Daniel Ervér, 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 (CET) on 27 March 2024. This interim report and other information about the H&M group are 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 and quality at the
best price in a sustainable way. In addition to H&M, the group includes the brands COS, Monki, Weekday, & Other Stories, H&M HOME, ARKET and Afound as well
as Sellpy. For further information, visit hmgroup.com.

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

GROUP INCOME STATEMENT IN SUMMARY (SEK M)

For information about depreciation, amortisation and impairment, see note 4.

* Income from investments in associated companies and joint ventures for Q1 and for full year 2022/2023 include a one-time item of SEK 999 m for
revaluation of associated companies of which mainly the former associated company Sellpy.
** Before and after dilution, excluding own shares.

Q1 2024 Q1 2023
2022-12-01-
2023-11-30
Net sales, note 3 53,669 54,872 236,035
Cost of goods sold, note 4 -26,014 -28,986 -115,139
GROSS PROFIT 27,655 25,886 120,896
Gross margin, % 51.5 47.2 51.2

Selling expenses, note 4 -22,643 -23,108 -96,435
Administrative expenses, note 4 -2,921 -3,052 -10,895
Result from investments in associated companies and joint ventures* -14 999 971
OPERATING PROFIT 2,077 725 14,537
Operating margin, % 3.9 1.3 6.2

Net financial items -471 -329 -1,527
PROFIT AFTER FINANCIAL ITEMS 1,606 396 13,010

Tax -405 144 -4,287
PROFIT FOR THE PERIOD 1,201 540 8,723

Attributable to:
The shareholders of H & M Hennes & Mauritz AB 1,209 541 8,752
Non-controlling interest -8 -1 -29

Earnings per share, SEK** 0.75 0.33 5.35
Average number of shares outstanding, thousands** 1,617,495 1,629,687 1,629,097

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK M)

Q1 2024 Q1 2023
2022-12-01-
2023-11-30
PROFIT FOR THE PERIOD 1,201 540 8,723

Other comprehensive income
Items that are or may be reclassified to profit or loss
Translation differences -236 -135 12
Change in hedging reserves 44 669 413
Tax attributable to change in hedging reserves -9 -138 -85
Share of OCI related to associated companies and joint ventures 0 - -

Items that will not be reclassified to profit or loss
Remeasurement of defined benefit pension plans -59 7 -41
Tax related to the above remeasurement 15 -1 10
Remeasurement of financial assets, note 2 -21 -8 -599
OTHER COMPREHENSIVE INCOME -266 394 -290
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 935 934 8,433

Attributable to:
The shareholders of H & M Hennes & Mauritz AB 943 935 8,462
Non-controlling interest -8 -1 -29

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

GROUP BALANCE SHEET IN SUMMARY (SEK M)

* Equity attributable to the shareholders of H & M Hennes & Mauritz AB amounts to SEK 4 6,594 m (51,692) and to non-controlling interests SEK 93 m (88).
** Interest-bearing long-term liabilities amounts to SEK 62,370 m (59,255), excluding leasing SEK 14,426 m (10,308) of which provisions for
pensions SEK 478 m (343).
*** Interest-bearing current liabilities amounts to SEK 12,685 m (12,933), excluding leasing SEK 289 m (901).

GROUP CHANGES IN EQUITY IN SUMMARY (SEK M)

ASSETS 2024-02-29 2023-02-28 2023-11-30
NON-CURRENT ASSETS
Intangible non-current assets 9,148 10,550 9,725
Property, plant and equipment 24,512 23,765 25,242
R
ight-of-use assets 55,639 57,303 56,294
Non-current financial assets, note 2 2,665 2,831 2,572
Other non-current assets 6,935 7,357 6,911
98,899 101,806 100,744
CURRENT ASSETS
Stock-in-trade 37,630 41,040 37,358
Current receivables 16,416 15,333 16,773
Cash and cash equivalents 20,822 21,290 26,398
74,868 77,663 80,529
TOTAL ASSETS 173,767 179,469 181,273
EQUITY AND LIABILITIES
Equity* 46,687 51,780 47,601
Long-term liabilities** 16,900 13,929 17,016
Long-term leasing liabilities** 47,944 48,947 48,729
S
hort-term liabilities*** 49,840 52,781 55,768
Current leasing liabilities*** 12,396 12,032 12,159
TOTAL EQUITY AND LIABILITIES 173,767 179,469 181,273
2024-02-29 2023-02-28 2023-11-30
Shareholders' equity at the beginning of the financial year 47,601 50,757 50,757
Total comprehensive income for the period 935 934 8,433
Non-controlling interest that has arisen from acquisitions - 89 111
Dividend - - -10,577
Repurchase of shares -1,849 - -1,123
Shareholders' equity at the end of the period 46,687 51,780 47,601

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

GROUP CASH FLOW STATEMENT IN SUMMARY (SEK M)

* Interest paid for the group amounts to SEK 192 m (74). Interest expense related to leases amounts to SEK 491 m (338) for the group.
Received interest for the group amounts to SEK 212 m (83).

Q1 2024 Q1 2023
Operating activities
Profit after financial items* 1,606 396
Adjustment for non-cash items
Provisions for pensions 43 18
Other provisions 161 -
Depreciation, amortisation and write-downs 5,405 5,505
Other non-cash items 14 -999
Taxes paid -717 -249
Cash flow from operating activites before changes in working capital 6,512 4,671
Cash flow from changes in working capital
Operating receivables -39 -409
Stock-in-trade -577 1,482
Operating liabilities -1,929 -758
CASH FLOW FROM OPERATING ACTIVITIES 3,967 4,986
Investing activities
Investments in intangible fixed assets -187 -337
Investments in tangible fixed assets -1,294 -1,227
Other -175 -79
CASH FLOW FROM INVESTING ACTIVITIES -1,656 -1,643
Financial activities
Change in interest-bearing liabilities -2,770 19
Amortisation lease -3,134 -3,124
Repurchase of shares -1,810 -
CASH FLOW FROM FINANCIAL ACTIVITIES -7,714 -3,105
CASH FLOW FOR THE PERIOD -5,403 238
Cash and cash equivalents at beginning of the financial year 26,398 21,707
Cash flow for the period -5,403 238
Exchange rate effect -173 -655
Cash and cash equivalents at end of the period 20,822 21,290

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

FIVE YEAR SUMMARY
Q1, 1 DECEMBER – 29 FEBRUARY

* Before and after dilution, excluding own shares.

For definitions and explanations of the alternative performance measures in this report, see page 1 38-140 in the annual and sustainability report for the 2023
financial year.

2020 2021 2022 2023 2024
Net sales, SEK m 54,948 40,060 49,166 54,872 53,669
Change net sales from previous year in SEK, % 8 -2 7 23 12 -2
Change net sales previous year in local currencies, % 5 -21 18 3 -2
Operating profit, SEK m 2,690 -1,128 458 725 2,077
Operating margin, % 4.9 -2.8 0.9 1.3 3.9
Depreciation, amortisation and write-downs for the
period, SEK m 6,397 5,712 5,393 5,505 5,405
Profit after financial items, SEK m 2,504 -1,389 282 396 1,606
Profit after tax, SEK m 1,928 -1 ,070 217 540 1,201
Cash and cash equivalents, SEK m 11,972 17,304 27,403 21,290 20,822
Stock-in-trade, SEK m 37,201 36,978 39,331 41,040 37,630
Equity, SEK m 59,237 53,390 60,715 51,780 46,687
Average number of shares outstanding, thousands* 1,655,072 1,655,072 1,655,072 1,629,687 1,617,495
Earnings per share, SEK* 1.16 -0.65 0.13 0.33 0.75
Cash flow from operating activities per share, SEK 4.13 3.59 2.19 3.06 2.45
Number of shares outstanding as of the closing day,
thousands* 1,655,072 1,655,072 1,655,072 1,629,687 1,610,735
Equity per share, SEK* 35.79 32.26 36.68 31.77 28.98
Share of risk-bearing capital, % 34.1 33. 7 34.8 30.7 28.2
Equity/assets ratio, % 31.7 31.4 32.8 28.9 26.9
Total number of stores 5,053 4,949 4,721 4,414 4,338
Rolling 12 months
Average number of shares outstanding, thousands* 1,655,072 1,655,072 1,655,072 1,643,587 1,626,067
Earnings per share, SEK* 8.80 -1.06 7.43 2.37 5.77
Return on equity, % 24.4 -3.1 21.6 6.9 19.1
Return on capital employed, % 17.1 -0.4 13.1 6.0 13.5

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

PARENT COMPANY INCOME STATEMENT IN SUMMARY (SEK M)

* Revenue from interests in group companies in the quarter consists of SEK 402 m (0).

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK M)

Q1 2024 Q1 2023
2022-12-01-
2023-11-30
Net sales 538 529 2,264
GROSS PROFIT 538 529 2,264

Administrative expenses -32 -21 -108
OPERATING PROFIT 506 508 2,156

Net financial items* 328 -46 11,224
PROFIT AFTER FINANCIAL ITEMS 834 462 13,380

Year-end appropriations - - -1,496
Tax -89 -94 -117
PROFIT FOR THE PERIOD 745 368 11,767

Q1 2024 Q1 2023
2022-12-01-
2023-11-30
PROFIT FOR THE PERIOD 745 368 11,767

Other comprehensive income
Items that have not been and will not be reclassified to profit or loss
Remeasurement of defined benefit pension plans -2 0 -14
Tax related to the above remeasurement 0 0 3
OTHER COMPREHENSIVE INCOME -2 0 -11
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 743 368 11,756

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK M)

* All long-term liabilities are interest-bearing.
** Interest-bearing current liabilities amounts to SEK 0 m (720).

2024-02-29 2023-02-28 2023-11-30
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 137 152 140
Other non-current assets 1,726 1,374 1,595
1,863 1,526 1,735

CURRENT ASSETS
Current receivables 28,310 25,775 30,812
Cash and cash equivalents 0 3 2
28,310 25,778 30,814

TOTAL ASSETS 30,173 27,304 32,549

EQUITY AND LIABILITIES
Equity 15,254 16,672 16,360
Untaxed reserves 17 21 17
Long-term liabilities* 13,069 9,349 13,195
Short-term liabilities** 1,833 1,262 2,977
TOTAL EQUITY AND LIABILITIES 30,173 27,304 32,549

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

NOTE 1. 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 2023. No new or
revised IFRS standards or interpretations applied from 1 December 2023 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 2023 financial year.
NOTE 2. 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 24 in the annual and sustainability report for 2023.
Shares are measured at fair value, either through profit or loss or through other comprehensive income. Where
holdings of shares are assessed to be strategic, the H&M group has chosen to recognise changes in value in other
comprehensive income.
The value of the holding in Renewcell is based on the share price, which is a level 1 input according to IFRS 13.
Renewcell declared bankruptcy in February 2024 and has thus been delisted, and the holding has subsequently
been written down. Fair value amounts to SEK 0 m (363) as at 29 February 2024. The fair value of the remaining
shares and interests based on level 3 inputs according to IFRS 13 amounts in total to SEK 2,454 m (2,342) as at 29
February 2024, the largest investments being Klarna at SEK 619 m (456), Sheertex at SEK 619 m (526), and Instabee
at SEK 200 m (709). The effect of measurement of the group’s other shares and interests is reported in other
comprehensive income and amounts to SEK -21 m (-8) for the first quarter.
Currency derivatives are measured at fair value based on level 2 inputs in the IFRS 13 hierarchy. As at 29 February
2024 forward contracts with a positive market value amount to SEK 882 m (604), reported under other current
receivables. Forward contracts with a negative market value amount to SEK 777 m (920), which is recognised in
other current liabilities.
In hedge accounting, derivatives are classified as cash flow hedges or as fair value hedges. As at 29 February 2024
the nominal amount of outstanding interest rate swaps was SEK 5,590 m (0). The interest rate swaps are reported
as fair value hedges through profit or loss. Changes in the fair value of the swaps are reported in the income
statement together with changes in the fair value of the hedged liability to which the hedged risk relates.
Measurement is based on forward interest rates using observable interest rate curves and discounting of
contractual cash flows (corresponding to level 2).
Other financial assets and liabilities are measured at amortised cost. Measurement at fair value would decrease the
group’s liabilities to credit institutions by around SEK 1,000 m. The decrease is due to general interest rate increases
since debt was issued. The fair values of other financial instruments are assessed to be approximately equal to their
book values.

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

NOTE 3. SEGMENT REPORTING (SEK M)

* South Africa
Q1 2024 Q1 2023
Asia and Oceania
External net sales 7,212 7,520
Operating profit 51 -221
Operating margin, % 0.7 -2.9
Europe and Africa*
External net sales 33,729 33,827
Operating profit 1,119 -209
Operating margin, % 3.3 -0.6
North and South America
External net sales 12,728 13,525
Operating profit -339 109
Operating margin, % -2.7 0.8
Group Functions
Net sales to other segments 16,899 17,092
Operating profit 1,246 1,046
Operating margin, % 7.4 6.1
Eliminations
Net sales to other segments -16,899 -17,092
Total
External net sales 53,669 54,872
Operating profit 2,077 725
Operating margin, % 3.9 1.3
Net financial items -471 -329
Profit after financial items 1,606 396

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

Three-month report 2024 (1 Dec 2023 – 29 Feb 2024)

NOTE 4. DEPRECIATIONS, AMORTISATIONS AND WRITE-DOWNS

* Release of unused provisions for store closures.

NOTE 5. EVENTS AFTER THE CLOSING DATE
There have been no significant events after the closing date that effects the financial reporting.

Q1 2024 Q1 2023
2022-12-01-
2023-11-30
DEPRECIATIONS AND AMORTISATIONS
Intangible non-current assets and property, plant and equipment
excluding right-of-use assets
Cost of goods sold 234 222 935
Selling expenses 1,794 1,920 7,742
Administrative expenses 98 114 438
Total 2,126 2,256 9,115

Right-of-use assets
Cost of goods sold 330 190 1,107
Selling expenses 2,841 2,870 11,552
Administrative expenses 107 95 411
Total 3,277 3,156 13,070
TOTAL DEPRECIATIONS AND AMORTISATIONS 5,403 5,412 22,185

WRITE-DOWNS AND LOSSES AT DISPOSALS
Intangible non-current assets and property, plant and equipment
excluding right-of-use assets
Cost of goods sold 1 5 69
Selling expenses -4* 79 605
Administrative expenses 5 69 21
Total 2 153 695

Right-of-use assets
Cost of goods sold - - -
Selling expenses - -60* 74
Administrative expenses - - -
Total - -60 74
TOTAL WRITE-DOWNS AND LOSSES AT DISPOSALS 2 93 770
TOTAL DEPRECIATIONS, AMORTISATIONS, WRITE-DOWNS AND
LOSSES AT DISPOSALS 5,405 5,504 22,955