Kvartalsrapport Q3 2023

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

H & M Hennes & Mauritz AB 
 
Nine-month report 
Nine months (1 December 2022 – 31 August 2023) 
• The H&M group’s net sales in SEK increased by 8 percent in the first nine months of the  
financial year to SEK 173,385 m (161,120). In local currencies, net sales were flat compared with  
the previous year. 
• The gross profit increased to SEK 87,239 m (82,266). This corresponds to a gross margin of 
50.3 percent (51.1). 
• Selling and administrative expenses amounted to SEK 78,016 m (75,918). In local currencies, these 
expenses decreased by 3 percent. 
• Operating profit increased to SEK 10,205 m (6,348), corresponding to an operating margin of 
5.9 percent (3.9). In 2022 one-time costs for Russia of SEK 1,751 m were charged against the nine-
month result. Adjusted for these one-time costs the increase compared with the previous year 
was 26 percent. 
• The result after tax increased by 61 percent to SEK 7,147 m (4,430), corresponding to SEK 4.39 
(2.68) per share. 
• Cash flow from operating activities increased to SEK 24,742 m (18,221). 
• Financial net cash amounted to SEK 13,555 m (17,441). Cash and cash equivalents plus undrawn 
credit facilities were SEK 43,918 m (45,700). 
Third quarter (1 June 2023 – 31 August 2023) 
• Net sales increased by 6 percent to SEK 60,897 m (57,450) in the third quarter. In local currencies, 
net sales were flattish compared with the previous year. 
• Sales for Portfolio Brands in the third quarter increased by 16 percent in SEK and by 10 percent in 
local currencies. 
• Gross profit increased by 10 percent to SEK 31,015 m (28,160). This corresponds to a gross margin 
of 50.9 percent (49.0). 
• Selling and administrative expenses decreased by 4 percent to SEK 26,271 m (27,258).  
In local currencies, these expenses decreased by 10 percent.  
• Operating profit increased to SEK 4,739 m (902). This corresponds to an operting margin of 
7.8 percent (1.6). One-time costs of SEK 2,104 m for winding down the Russian operations were 
charged to the third quarter 2022. Adjusted for these one-time costs the increase compared with 
the previous year was 58 percent. 
• The result after tax increased to SEK 3,319 m (531), corresponding to SEK 2.04 (0.32) per share. 
• Currency adjusted the stock-in-trade decreased by 21 percent compared with the previous year. 
Converted into Swedish kronor the stock-in-trade decreased by 14 percent to SEK 40,358 m 
(47,141). The stock-in-trade in SEK represented 17.1 percent (21.6) of rolling 12-month sales. 
• In the third quarter cash flow from operating activities improved by 118 percent to SEK 12,257 m 
(5,630).  
 
• Sales during September 2023 are expected to decrease by 10 percent in local currencies 
compared with September 2022. The discontinued operations in Russia account for 4 percentage 
points of the decrease. The figure for September should be seen in the light of unusually hot 
weather in several of the company’s European markets, which has had a substantial negative 
impact on sales during the month. 
• Further to the authorisation given by the annual general meeting, the board of directors has 
decided to buy back the company’s own B shares for SEK 3 billion starting from 27 September 
2023. 
• H&M is developing well in Latin America and plans to open its first store as well as online in Brazil  
in 2025. 
• H&M plans to gradually reopen most of its stores in Ukraine from November 2023 onwards. 
“The focus during the quarter has been on profitability and inventory efficiency, resulting in strong cash 
flow and good profit development. We are taking further steps towards our goals and creating conditions 
for profitable growth over time,” says Helena Helmersson, CEO. 
Q3 
 
 
 
 
 
Cash flow from operating  
activities 
SEK 12,257 m 
Third quarter 2023 
 
 
The result after tax 
+61% 
Nine months 2023

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
2 
Comments by Helena Helmersson, CEO 
During the quarter the focus has been on profitability and inventory efficiency, resulting in 
strong cash flow and good profit development. We are taking further steps towards our goals 
and creating good conditions for profitable growth over time. 
Sales in the third quarter started strongly with pent-up demand for summer garments following 
a cold May in most of our major markets. The effect then gradually decreased during the 
summer. There was a weaker end to the quarter, with comparative figures affected by the 
temporary reopening in Russia in August last year. Having now moved into September, we can 
see that the start of the autumn season has been delayed because the month so far has been 
marked by unusually hot weather in many of our European markets. 
In times of high inflation where household living costs are rising significantly it is more important 
than ever to offer customers the best price and unbeatable value for money. Our highest 
priority remains the customer offering, where work to improve the assortment and the 
customer experience is making progress, alongside further integration of the two channels. We 
are continuing our investments in areas such as tech, AI and the supply chain, which is enabling 
improved flexibility, faster response times and greater precision in buying. This leads to 
customers having access to an even wider and more relevant assortment.  
Our store portfolio has reached a level where we now see fewer closures going forward while 
at the same time new stores will be opened. The stores are an important part of building our 
brand and we are increasing investments in stores to further elevate the customer experience. 
We are also creating new conditions for growth. During September H&M was successfully 
launched on JD.com, one of China’s biggest marketplaces for e-commerce. We are developing 
well in Latin America and are looking forward to taking H&M’s offering to many new customers 
in Brazil, where the opening of the first stores as well as online is planned during 2025.  
Since we temporarily closed our stores in Ukraine in February last year, we have maintained a 
close dialogue with various stakeholders. We now plan to gradually reopen most of our stores 
in the country from November 2023 onwards. 
Our efforts to create conditions for profitable growth towards our long-term goals are taking us 
in the right direction. The cost and efficiency programme is proceeding at full speed and will 
continue to have an effect in the coming quarters. With a strong customer focus, improved 
cash flow and increased inventory efficiency our goal of an operating margin of 10 percent 
during 2024 remains.

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
3 
Sales 
 
The H&M group’s net sales in the third quarter increased by 6 percent to SEK 60,897 m 
(57,450). In local currencies, net sales were flattish compared with the previous year. 
Net sales in the nine-month period increased by 8 percent to SEK 173,385 m (161,120). In local 
currencies, net sales were flat compared with the previous year. 
Around 30 percent of sales are online. 
Net sales for Portfolio Brands in the third quarter increased by 16 percent in SEK and by 
10 percent in local currencies. In the nine-month period the increase was 17 percent in SEK and 
10 percent in local currencies. 
Sales per region, nine months 
 
Sales were temporarily resumed in Russia from August until November 2022. Development in 
eastern Europe should be seen in light of the fact that the H&M group’s operations in Russia 
and Belarus have been fully wound down since 30 November 2022, while operations in Ukraine 
have been paused since the end of February 2022. Excluding Russia, Belarus and Ukraine, sales 
in eastern Europe for the first nine months increased by 17 percent in SEK and 7 percent in 
local currencies. 
 
57,450
161,120
60,897
173,385
+ 6%
+ 8%
0
50,000
100,000
150,000
200,000
Q3 Nine months
SEK m
2022
2023
SEK m SEK m  SEK LCY  
New stores
 (net)  
2023 2022 2023 31 Aug - 23 31 Aug - 22
The Nordics 15,954 14,930 7 5 -6 393 40 5
Western Europe 57,723 51,326 12 3 -28 1,051 1,085
Eastern Europe 14,093 15,173 -7 -17 -3 478 654
Southern Europe 22,723 20,538 11 5 -11 612 628
North & South America 39,818 36,603 9 0 -5 735 733
Asia, Oceania & Africa 23,074 22,550 2 -1 -37 1,106 1,159
Total 173,385 161,120 8 0 -90 4,375 4,664
Number of stores 
Change in %

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 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 31,015 m (28,160) for the third quarter, corresponding to a gross 
margin of 50.9 percent (49.0).  
For the nine-month period gross profit increased to SEK 87,239 m (82,266). This corresponds 
to a gross margin of 50.3 percent (51.1). 
The cost of markdowns in relation to sales was somewhat higher in the third quarter compared 
with the corresponding quarter the previous year. 
External factors affecting purchases of goods have gradually improved during the year. For the 
goods that will be sold in the fourth quarter, the effect of external factors is expected to be 
positive compared with the previous year. 
  
28,160
82,266
31,015
87,239
0
20,000
40,000
60,000
80,000
100,000
Q3 Nine months
SEK m
2022
202349.0% 50.9%
50.3%
51.1%

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
5 
Selling and administrative expenses 
 
Selling and administrative expenses decreased in the third quarter by 4 percent to  
SEK 26,271 m (27,258). In local currencies these expenses decreased by 10 percent. 
For the nine-month period, selling and administrative expenses increased by 3 percent in  
SEK compared with the same period the previous year. In local currencies the decrease was 
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 the previous year. The 
actions from the programme already started to have an effect in the second quarter. Further 
steps have been taken in the work on the cost and efficiency programme in the third quarter. 
The programme is expected to be materialised further in the coming quarters and is estimated 
to result in annual savings of around SEK 2 billion. 
Operating profit and operating margin 
 
Operating profit in the third quarter increased to SEK 4,739 m (902), corresponding to an 
operating margin of 7.8 percent (1.6). The strong gross margin, the cost and efficiency 
programme, and good operational cost control all had a positive impact on operating profit. 
One-time costs of SEK 2,104 m were charged to the third quarter 2022 for winding down the 
Russian operations. Adjusted for these one-time costs the operating profit increased by 58 
percent compared with the previous year. 
Operating profit for the nine-month period increased to SEK 10,205 m (6,348), corresponding 
to an operating margin of 5.9 percent (3.9). In 2022 one-time costs for Russia of SEK 1,751 m 
were charged to the nine-month result. Adjusted for these one-time costs the increase in 
operating profit compared with the previous year was 26 percent. 
27,258
75,918
26,271
78,016
- 4%
+ 3%
0
20,000
40,000
60,000
80,000
100,000
Q3 Nine months
SEK m
2022
2023
902
6,348
4,739
10,205
+ 425%
+ 61%
0
2,000
4,000
6,000
8,000
10,000
Q3 Nine months
SEK m
2022
2023

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
6 
Income statement including and excluding IFRS 16 effects 
 
For definitions of alternative performance measures, see the second to last page of the report . 
Stock-in-trade 
 
Currency adjusted the stock-in-trade decreased by 21 percent compared with the previous 
year. Converted into Swedish kronor the stock-in-trade decreased by 14 percent to 
SEK 40,358 m (47,141). 
The composition of the stock-in-trade is assessed to be good. 
The stock-in-trade in SEK represented 17.1 percent (21.6) of rolling 12-month sales, which 
amounted to SEK 235,818 m (217,933).  
The investments in the supply chain and the integration of the sales channels continue. With a 
higher share of nearshoring, shorter lead times and more purchasing in season, the group is 
well placed for a continued improvement in the stock situation. 
  
SEK m
Q3
2023
Q3
2022
Nine 
months
2023
Nine 
months
2022
Net sales 60,897 57,450 173,385 161,120
Gross profit 31,015 28,160 87,239 82,266
Gross profit excl. IFRS 16 30,967 28,144 87,149 82,212
Operating profit 4,739 902 10,205 6,348
Operating margin, % 7.8 1.6 5.9 3.9
Operating profit excl. IFRS 16 4,171 662 8,839 5,583
Operating margin, %, excl. IFRS 16 6.8 1.2 5.1 3.5
Net financial items -366 -213 -1,111 -595
Net financial items, excl. IFRS 16 122 -21 145 -29
Profit after financial items 4,373 689 9,094 5,753
Profit after financial items, excl. IFRS 16 4,293 641 8,984 5,554
Profit for the period 3,319 531 7,147 4,430
Profit for the period, excl. IFRS 16 3,258 494 7,063 4,277
Depreciation & amortisation / write-downs 5,727 6,186 16,725 16,788
Depreciation & amortisation / write-downs, excl. IFRS 16 2,352 2,889 7,172 7,840
47,141
40,358
- 14%
0
10,000
20,000
30,000
40,000
50,000
31 August
SEK m
2022
2023

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
7 
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. Optimisation of and reinvestment in 
the store portfolio is continuing in parallel, meeting customers’ needs in interaction with the 
digital channels. 
COS opened its first physical store in Mexico in August. During the quarter & Other Stories was 
also launched on the digital marketplace The Iconic in Australia and New Zealand, while Monki 
opened on the Zalora marketplace in Hong Kong. September saw the successful launch of both 
H&M and Arket on JD.com, one of China’s biggest digital marketplaces. The same month H&M 
opened an online store on Namshi in Saudi Arabia. & Other Stories opened its first physical 
store in Switzerland in September, when COS also opened on The Iconic in Australia and New 
Zealand. Arket will open its first physical store in Switzerland and Latvia in the later part of the 
year and plans to launch in Spain during 2024. 
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, 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. The store portfolio has reached a level of fewer closures going forward 
while at the same time new stores will be opened. 
Store count and markets by brand 
As at 31 August 2023 the H&M group had 4,375 (4,664) stores, i.e. the total number of stores 
has decreased by 289 compared with the same point in time the previous year. 175 of the 
stores closed were in Russia and Belarus, where the business was wound down in 2022. During 
the current financial year 66 (55) new stores have opened and 156 (192) stores have closed.  
A total of 282 (282) of the group’s stores are operated by franchise partners.  
 
Store Online
Brand Q3 Nine months 31 Aug - 2023 31 Aug - 2022
H&M -18 -72 3,875 4,122 77 60
COS -4 -11 248 264 48 38
Monki -3 -9 69 89 17 29
Weekday 0 -1 53 57 14 29
& Other Stories 0 -1 70 76 25 32
ARKET 0 2 27 25 12 31
Afound 0 0 0 0 0 7
H&M HOME* 1 2 33 31 55 42
Sellpy 0 0 0 0 0 24
Total -24 -90 4,375 4,664
No. of markets
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 406 H&M stores.
31 Aug - 2023
New Stores 2023 (net)

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 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 nine-month period increased to SEK 24,742 m (18,221). 
Excluding IFRS 16, cash flow from operating activities amounted to SEK 15,079 m (9,074). 
Operating working capital amounted to SEK 17,347 m (20,684). 
In the third quarter cash flow was significantly improved compared with the previous year. 
Conservative buying for the quarter enabled increased inventory efficiency and released 
capital. In the third quarter cash flow from operating activities increased to SEK 12,257 m 
(5,630). 
 
 
Liquidity and debt financing 
The H&M group’s liquidity remains very good. As at 31 August 2023 cash and cash equivalents 
amounted to SEK 24,971 m (27,547). In addition, the group has undrawn credit facilities of 
SEK 18,947 m (18,153). The total liquidity buffer, i.e. cash and cash equivalents plus undrawn 
credit facilities, amounted to SEK 43,918 m (45,700). 
Interest-bearing liabilities in the form of commercial papers, bonds and loans from credit 
institutions amounted to SEK 11,417 m (10,106) as at 31 August 2023. The average maturity of 
interest-bearing liabilities was 3.7 (4.8) years. 
Financial net cash amounted to SEK 13,555 m (17,441). Net debt including provisions for 
pensions and excluding IFRS 16 amounted to SEK -13,105 m (-17,271). Net debt in relation to 
EBITDA amounted to -0.7 (-0.8) excluding IFRS 16. 
A maturity analysis of outstanding interest-bearing liabilities and undrawn credit facilities is 
given in the table below. 
 
Sustainable finance framework 
In the third quarter the H&M group established a Sustainable Finance Framework to enable  
the issue of green finance and sustainability-linked finance instruments. The Green Finance 
Framework specifies eligible green projects within a number of categories aligned with the 
International Capital Market Association’s (ICMA) Green Bond Principles. The Sustainability-
Linked Finance Framework includes the H&M group’s 2030 goals for share of recycled 
materials in commercial goods and for GHG emissions reductions for scope 1, 2 and 3, verified 
by the Science-Based Targets initiative. 
  
SEK m 31 Aug - 2023 31 Aug - 2022 30 Nov - 2022
Accounts recievable 2,596 2,671 3,014
Stock-in-trade 40,358 47,141 42,495
Accounts payable -25,607 -29,128 -21,090
Operating working capital 17,347 20,684 24,419
Year
Commercial
 papers
Bonds 
(EMTN)
Loans from
 credit institutions
Unused credit
facilities
2023 725 - 2,368 -
2024 - - 271 -
2025 - - - 3,553
2026 - - 2,000 -
2027 - - - 15 ,394
2028 - - 132 -
2029 - 5,921 - -
Total SEK m 725 5,921 4,771 18,947

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
9 
Tax 
The group’s tax rate for the financial year 2022/2023 is expected to be 24–25 percent, 
excluding results from investments in associated companies and joint ventures. 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 excluding results from investments in 
associated companies and joint ventures. 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. 
Share buyback 
The board of directors has decided to buy back the company’s own B shares for SEK 3 billion 
based on the authorisation given by the annual general meeting. The buyback programme is 
being initiated on 27 September 2023. For more information see the separate press release 
issued on 27 September 2023. 
Current quarter 
Sales during September 2023 are expected to decrease by 10 percent in local currencies 
compared with September 2022. The discontinued operations in Russia account for 
4 percentage points of the decrease. The figure for September should be seen in the light of 
unusually hot weather in several of the company’s European markets, which has had a 
substantial negative impact on sales during the month. 
The cost of markdowns in relation to sales in the fourth quarter is estimated to be in line with 
the corresponding quarter the previous 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, valuation techniques, 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 31 August 2023, forward contracts with a positive market value amount to SEK 1,105 m 
(2,740), which is reported under other current receivables. Forward contracts with a negative 
market value amount to SEK 1,255 m (1,537), 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

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
10 
value amounts to SEK 393 m (344) as of 31 August 2023. The fair value of the remaining shares 
and interests is based on level 3 inputs according to IFRS 13 and amounts to SEK 2,140 m 
(2,269) as of 31 August 2023, the largest investments being Sheertex at SEK 526 m (526), 
Klarna at SEK 456 m (456) and Instabee at SEK 428 m (578). The effect of measurement of the 
group’s other shares and interests is reported in other comprehensive income and amounts to 
SEK 117 m (-2,588) for the third 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. 
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. 
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. Sales were temporarily resumed in August until November 2022. 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 third quarter 2023 as a result of winding down these 
operations. Cash flow in the quarter was negatively impacted by outgoing payments of around 
SEK 150 m relating to the costs of winding down the business. 
In the second quarter 2022 the gross profit for the group was positively impacted by an 
unrealised exchange gain of SEK 353 m in respect of intra-group receivables in rubles. One-
time costs of SEK 2,104 m for winding down the Russian operations were charged to the third 
quarter 2022. The cumulative one-time costs for Russia charged to the nine-month results in 
2022 consequently amounted to SEK 1,751 m. 
Sales in the fourth quarter of 2022 from the liquidation of the Russian inventory amounted to 
around 3 percent of the H&M group’s sales. 
As previously communicated, H&M Group temporarily closed its stores in Ukraine as of 
24 February 2022. Since then the company has been in close dialogue with stakeholders and 
authorities and is now planning to gradually reopen most of its stores in the country from 
November 2023.  
During the period of preparation for reopening, the company continues to monitor 
developments in Ukraine closely. The safety of colleagues and customers will always be the 
first and foremost priority.

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 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 membership programme. Members receive personal fashion offers and 
services for an inspirational and more convenient shopping experience. Other benefits 
include rewards for bringing in clothes for H&M’s garment collecting, attending exclusive 
events and receiving other offers.   
• 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 suggestions for styling and 
matching items based on pictures customers have taken and 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. 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 physical stores, 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 to physical stores without 
any charges.  
• 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 offer customers a convenient payment alternative. Self-checkout has 
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, Germany and Belgium.  
• 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 group.  
• Personalised start page on hm.com offers a customised welcome page when customers visit 
the site in selected markets. They are offered tailor-made inspiration and suggestions based 
on individual style preferences.  
• Smart mirrors in fitting rooms. Mirrors that recognise products brought inside the fitting 
room and offer personalised product and styling recommendations, or additional sizes and 
colours. Available in selected countries. 
• 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 selected markets 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 =====

Nine-month report 2023 (1 Dec 2022 – 31 Aug 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 has opened during the year. This will 
supplement the logistics centres that were previously 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 was put into operation in New Delhi, India in the 
beginning of the year. 
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 on 
hmgroup.com. Some sustainability-linked updates include: 
Increasing recycled cotton.  Cotton is the H&M group’s most important material, representing 
about 60 percent of all the materials that are sourced for the products. In 2020, the company 
reached the goal to source 100 percent of the cotton from recycled, organic, or from other 
more sustainable sources (e.g. BCI cotton). Now, the focus is to further increase the share of 
recycled cotton. The share has already increased from under 1 percent to 11 percent (2022) 
recycled cotton in just a few years. The H&M group will continue to support strategic 
investments in cotton recycling technologies. 
Scaling the use of recycled polyester. While only representing some 20 percent of the H&M 
group’s total material basket the aim is to replace 100 percent of the virgin polyester the 
company sources with recycled polyester by 2025. In 2022, the company used 74 percent 
recycled polyester and the H&M group will continue to support the industry to especially scale 
textile-to-textile recycled polyester. 
Fashion Transparency Index results. H&M Group's overall score increased from last year's score 
in the Fashion Transparency Index 2023 to 71 percent (66). The H&M group ranked 6th out of 
250 brands. 
 
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 =====

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
13 
Calendar 
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 
15 March 2024 Sales development in the first quarter, 1 Dec 2023 – 29 Feb 2024 
28 March 2024 Three-month report, 1 Dec 2023 – 29 Feb 2024 
28 March 2024 Annual and Sustainability report 2023 
3 May 2024 Annual general meeting at 15:00 (CEST), Erling Persson Hall, 
Aula Medica, Solna 
 
 
Stockholm, 26 September 2023 
Board of Directors 
Communication in conjunction with the nine-month report 
The nine-month report, i.e., 1 December 2022 – 31 August 2023, will be published at 08:00 
CEST on 27 September 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 Joseph Ahlberg. 
For log in details for the telephone conference please register at hmgroup.com or via this link: 
https://app.webinar.net/rOKYX27mkWx 
To book interviews in conjunction with the nine-month report on 27 September 2023, 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  
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

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
14 
 
Review report 
H & M Hennes & Mauritz AB (Publ), corporate identity number 556042-7220 
Introduction 
We have reviewed the interim report for H & M Hennes & Mauritz AB (publ) for the period December 1, 2022 – August 31, 
2023. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in 
accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report 
based on our review. 
Scope of Review 
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of 
Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, 
primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  
A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other 
generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance 
that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed 
based on a review does not give the same level of assurance as a conclusion expressed based on an audit. 
Conclusion 
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material 
respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in 
accordance with the Annual Accounts Act. 
 
Stockholm, September 26, 2023 
 
Deloitte AB 
 
 
Didrik Roos 
Authorized Public Accountant 
 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 27 Septermber 2023. 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 15 =====

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
15 
  
Q3  2023 Q3  2022 Nine months  
2023 
Nine months  
2022 
1 Dec 2021-  
30 Nov 2022 
Net sales 60,897 57,450 173,385 161,120 223,553
Cost of goods sold* -29,882 -29,290 -86,146 -78,854 -110,183
GROSS PROFIT 31,015 28,160 87,239 82,266 113,370
Gross margin, % 50.9 49.0 50.3 51.1 50.7
Selling expenses -23,648 -24,813 -70,131 -68,111 -94,542
Administrative expenses* -2,623 -2,445 -7,885 -7,807 -11,390
Result from investments in associated companies and joint ventures* -5 - 982 - -269
OPERATING PROFIT 4,739 902 10,205 6,348 7,169
Operating margin, % 7.8 1.6 5.9 3.9 3.2
Net financial items -366 -213 -1,111 -595 -953
PROFIT AFTER FINANCIAL ITEMS 4,373 689 9,094 5,753 6,216
Tax -1,054 -158 -1,947 -1,323 -2,650
PROFIT FOR THE PERIOD 3,319 531 7,147 4,430 3,566
Attributable to:
The shareholders of H & M Hennes & Mauritz AB 3,328 531 7,165 4,430 3,566
Non-controlling interest -9 - -18 - -
Earnings per share, SEK** 2.04 0.32 4.39 2.68 2.16
Average number of shares outstanding, thousands** 1,629,687 1,651,760 1,629,687 1,653,960 1,649,847
Depreciation and amortisation / write-downs, total*** 5,727 6,186 16,725 16,788 22,579
   of which cost of goods sold 674 519 1,504 1,286 1,709
   of which selling expenses 4, 828 5,443 14,507 14,883 19,928
   of which administrative expenses 225 224 714 619 942
** Before and after dilution, excluding own shares.
*** Of which write-downs and losses at disposals in the quarter SEK -45 m (1,071) and for the full year SEK 61 m (1,356).
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME IN SUMMARY (SEK m)
Q3  2023 Q3  2022 Nine months  
2023 
Nine months  
2022 
1 Dec 2021-  
30 Nov 2022 
PROFIT FOR THE PERIOD 3,319 531 7,147 4,430 3,566
Other comprehensive income
Items that are or may be reclassified to profit or loss
Translation differences -324 1,674 1,432 4,288 3,902
Change in hedging reserves -133 -718 -879 -215 -478
Tax attributable to change in hedging reserves 27 137 181 33 87
Items that will not be reclassified to profit or loss
Remeasurement of defined benefit pension plans -43 52 -38 342 55
Tax related to the above remeasurement 10 -12 9 -79 -9
Remeasurement of financial assets 117 -2,588 -249 -2,800 -2,697
OTHER COMPREHENSIVE INCOME -346 -1,455 456 1,569 860
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 2,973 -924 7,603 5,999 4,426
Attributable to:
The shareholders of H & M Hennes & Mauritz AB 2,982 -924 7,621 5,999 4,426
Non-controlling interest -9 - -18 - -
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 the nine-month period 2023 relates to SEK 999 
m for revaluation of associated companies of which mainly the former associated company Sellpy, and SEK -17 m in share in profits.

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
16 
 
 
 
 
 
  
GROUP BALANCE SHEET IN SUMMARY (SEK m)
ASSETS
31 Aug - 2023 31 Aug - 2022 30 Nov - 2022
Non-current assets
Intangible non-current assets 10,164 9,317 9,156
Property, plant and equipment 25,120 24,382 2 4,431
Right-of-use assets 58,448 54,071 58,305
Non-current financial assets 2,718 3,189 3,157
Other non-current assets 7,713 8,097 7,476
104,163 99,056 102,525
Current assets
Stock-in-trade 40,358 47,141 42,495
Current receivables 18,051 18,256 15,321
Cash and cash equivalents 24,971 27,547 21,707
83,380 92,944 79,523
TOTAL ASSETS 187,543 192,000 182,048
EQUITY AND LIABILITIES
Equity* 47,878 54,071 50,757
Long-term liabilities** 12,301 14,135 13,674
Long-term leasing liabilities** 50,415 46,659 49,282
C
urrent liabilities*** 64,279 65,689 55,760
Current leasing liabilities*** 12,670 11,446 12,575
TOTAL EQUITY AND LIABILITIES 187,543 192,000 182,048
CHANGE IN GROUP EQUITY IN SUMMARY (SEK m) 
31 Aug - 2023 31 Aug - 2022 30 Nov - 2022
Shareholders' equity at the beginning of the period 50,757 60,018 60,018
Total comprehensive income for the period  7,603 5,999 4,426
Non-controlling interest that has arisen from acquisitions 111 - -
Div
idend -10,593 -10,726 -10,687
Repurchase of shares - -1,220 -3,000
Shareholders' equity at the end of the period 47,878 54,071 50,757
**  Interest-bearing long-term liabilities including leasing amounts to SEK 59,172 m (56,304), excluding leasing SEK 8,757 m (9,645) of which provisions for pensions SEK 449 m (170).
*** Interest-bearing current liabilities including leasing amounts to SEK 15,780 m (12,077), excluding leasing SEK 3,110 m (631).
* Equity attributable to the shareholders of H & M Hennes & Mauritz AB amounts to SEK 47,785 m (54,071) and to non-controlling interests SEK 93 m (0).

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
17 
 
  
Nine months 2023 Nine months 2022
Operating activities 
Profit after financial items* 9,094 5,753
Adjustment for non-cash items
- Provisions for pensions 69 53
- Other provisions -437 -
- Depreciation and amortisation / write-downs 16,725 16,788
- Other non-cash items -982 -
Taxes paid -3,781 -3,001
Cash flow from operating activites before changes in working capital 20,688 19,593
Changes in working capital
Operating receivables 25 149
Stock-in-trade 3,027 -8,242
O
perating liabilities 1,002 6,721
CASH FLOW FROM OPERATING ACTIVITIES 24,742 18,221
Investing activities
Investments in intangible fixed assets -797 -1,035
Investments in tangible fixed assets -4,799 - 2,588
Other -260 -933
CASH FLOW FROM INVESTING ACTIVITIES -5,856 -4,556
Financial activities
Change in interest-bearing liabilities -44 174
Amortisation lease -9,663 - 9,147
Dividend -5,297 -5,379
Repurchase of shares - -1,162
CASH FLOW FROM FINANCIAL ACTIVITIES -15,004 -15,514
CASH FLOW FOR THE PERIOD 3,882 -1,849
Cash and cash equivalents at beginning of the financial year 21,707 27,471
Cash flow for the period 3,882 -1,849
Exchange rate effect -618 1,925
Cash and cash equivalents at end of the period 24,971 27,547
GROUP CASH FLOW STATEMENT IN SUMMARY (SEK m)
*  Interest paid for the group amounts to SEK 241 m (137). Interest expense related to leases amounts to SEK 1,256 m (566) for the group.
   Received interest for the group amounts to SEK 386 m (108).

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
18 
 
 
FIVE YEAR SUMMARY
Nine months, 1 December - 31 August
2019* 2020 2021 20 22 2023
Net sales, SEK m 171,061 134,482 142,154 161,120 173,385
Change net sales from previous year in SEK, % 11 -21 6 13 8
Change net sales previous year in local currencies, % 6 -21 13 8 0
Operating profit, SEK m 11,969 -798 8,996 6 ,348 10,205
Operating margin, % 7.0 -0.6 6.3 3.9 5.9
Depreciation and amortisation / write-downs for the period, SEK m 8,216 20,084 16,781 16 ,788 16,725
Profit after financial items, SEK m 11,988 -1,613 8,297 5,753 9,094
Profit after tax, SEK m 9,231 -1,242 6,389 4,430 7,147
Cash and cash equivalents, SEK m 13,064 12,138 35,298 2 7,547 24,971
Stock-in-trade, SEK m 42,044 42,076 36,867 47,141 40,358
Equity, SEK m 53,409 52,786 64,409 54,071 47,878
Average number of shares outstanding, thousands** 1,655,072 1,655,072 1,655,072 1 ,653,960 1,629,687
Earnings per share, SEK** 5.58 -0.75 3.86 2.68 4.39
Cash flow from operating activities
per share, SEK** 10.43 9.66 22.48 11. 02 15.18
Number of shares outstanding as of the closing day, thousands** 1,655,072 1,655,072 1,655,072 1,645,494 1,629,687
Equity per share, SEK** 32.27 31.89 38.92 32.86 29.38
Share of risk-bearing capital, % 45.3 31.6 36.9 3 0.4 27.3
Equity/assets ratio, % 41.7 29.2 34.8 28.2 25.5
Total number of stores 4,972 5,043 4,856 4 ,664 4,375
Rolling twelve months 
Average number of shares outstanding, thousands** 1,655,072 1,655,072 1 ,655,072 1,654,237 1,637,189
Earnings per share, SEK** 7.72 1.79 5.36 5.47 3.84
Return on equity, % 23.6 5.6 15.1 15.3 12.3
Return on capital employed, % 23.1 4.6 9.6 10.1 9.3
*    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 19 =====

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
19 
 
 
 
 
SEGMENT REPORTING (SEK m)
Nine months 2023 Nine months 2022
Asia and Oceania
External net sales 22,216 21,765
Operating profit 736 -305
Operating margin, % 3.3 -1.4
Europe and Africa*
External net sales 111,350 102,754
Operating profit 3,099 443
Operating margin, % 2.8 0.4
North and South America
External net sales 39,819 36,601
Operating profit 529 1,064
Operating margin, % 1.3 2.9
Group Functions
Net sales to other segments 59,126 48,960
Operating profit 5,841 5,146
Eliminations
Net sales to other segments -59,126 -48,960
Total
External net sales 173,385 161,120
Operating profit 10,205 6,348
Operating margin, % 5.9 3.9
Net financial items -1,111 -595
Profit after financial items 9,094 5,753
* South Africa

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
20 
 
 
 
 
  
PARENT COMPANY INCOME STATEMENT IN SUMMARY (SEK m)
Q3
2023 
Q3
2022** 
Nine months
2023 
Nine months
2022 
1 Dec 2021-
30 Nov 2022 
Net sales 575 994 1,649 2,896 4,024
GROSS PROFIT 575 994 1,649 2,896 4,024
Administrative expenses -21 -25 -82 -100 -97
OPERATING PROFIT 554 969 1,567 2,796 3,927
Net financial items* 303 4,046 520 5,860 8,937
PROFIT AFTER FINANCIAL ITEMS 857 5,015 2,087 8,656 12,864
Year-end appropriations - - - - -3,139
Tax -104 -194 -286 -561 -149
PROFIT FOR THE PERIOD 753 4,821 1,801 8,095 9,576
Q3
2023 
Q3
2022** 
Nine months
2023 
Nine months
2022 
1 Dec 2021-
30 Nov 2022 
PROFIT FOR THE PERIOD 753 4,821 1,801 8,095 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 2 5 0 26 20
Tax related to the above remeasurement 0 -1 0 -5 -4
OTHER COMPREHENSIVE INCOME 2 4 0 21 16
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 755 4,825 1,801 8,116 9,592
* Revenue from interests in group companies in the quarter consists of SEK 349 m (4,070) and in the nine-month period of SEK 693 m (5,931).
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK m)
** Adjustments to disclosures for Q3 2022 have been made to the following extent: net sales SEK -906 m, administrative expenses SEK 39 m, net financial items SEK 11 m and tax SEK 176 
m. The net effect on the profit for the period for the quarter is SEK -680 m.

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
21 
 
  
PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK m)
31 Aug - 2023 31 Aug - 2022 3 0 Nov - 2022
ASSETS
Non-current assets
Property, plant and equipment 144 159 156
O
ther non-current assets 1,373 1,444 1,072
1,517 1,603 1,228
Current assets
Current receivables 20,095 31,150 26,095
Cash and cash equivalents 1,009 0 2
21,104 31,150 26,097
TOTAL ASSETS 22,621 32,753 27,325
EQUITY AND LIABILITIES
Equity 7,512 16,569 1 6,304
Untaxed reserves 21 32 21
Long-term liabilities* 7,281 9,351 9,349
Current liabilities** 7,807 6,801 1,651
TOTAL EQUITY AND LIABILITIES 22,621 32,753 27,325
* All long-term liabilities are interest-bearing.
** Interest-bearing current liabilities amounts to SEK 2,793 m (300). Dividend to be paid amounts to SEK 5,297 m (5,379).

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

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
22 
 
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
Q3 - 2023 Q3 - 2022
Nine months
2023
Nine months
2022
Gross profit 31,015 28,160 87,239 82,266
IFRS 16 effect -48 -16 -90 -54
Gross profit excl IFRS 16 30,967 28,144 87,149 82,212
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
Q3 - 2023 Q3 - 2022
Nine months
2023
Nine months
2022
Operating profit 4,739 902 10,205 6,348
IFRS 16 effect -568 -240 -1,366 -765
Operating profit excl IFRS 16 4,171 662 8,839 5,583
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
Q3 - 2023 Q3 - 2022
Nine months
2023
Nine months
2022
Net financial items -366 -213 -1,111 -595
IFRS 16 effect 488 192 1,256 566
Net financial items excl IFRS 16 122 -21 145 -29
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
Q3 - 2023 Q3 - 2022
Nine months
2023
Nine months
2022
Profit after financial items 4,373 689 9,094 5,753
IFRS 16 effect -80 -48 -110 -199
Profit after financial items excl IFRS 16 4,293 641 8,984 5,554
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
Q3 - 2023 Q3 - 2022
Nine months
2023
Nine months
2022
Profit for the period 3,319 531 7,147 4,430
IFRS 16 effect -61 -37 -84 -153
Profit for the period excl IFRS 16 3,258 494 7,063 4,277
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 23 =====

Nine-month report 2023 (1 Dec 2022 – 31 Aug 2023) 
 
 
23 
 
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. The acquisition analysis was finalised in the 
second quarter 2023. Obtaining a controlling interest gave rise to intangible assets in the form of brands amounting to SEK 
500 m, technical platform amounting to SEK 136 m and goodwill amounting to SEK 949 m. Recognised goodwill is not 
expected to be tax-deductible. Sellhelp AB’s operations contributed SEK 815 m and SEK -41 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.