FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2024
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General Information
Q3
H & M Hennes & Mauritz AB
Nine-month report
2024
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
2
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
3
H & M Hennes & Mauritz AB
Nine-month report 2024
THIRD QUARTER (1 JUNE 2024 – 31 AUGUST
2024)
– The H&M group’s net sales in the third quarter amounted
to SEK 59,011 m (60,897). In local currencies net sales
were flat compared with the previous year.
– Gross profit amounted to SEK 30,133 m (31,015). This
corresponds to a gross margin of 51.1 percent (50.9).
– Selling and administrative expenses increased by
1 percent to SEK 26,602 m (26,271). In local currencies the
increase was 4 percent.
– Operating profit amounted to SEK 3,507 m (4,739),
corresponding to an operating margin of 5.9 percent (7.8).
Excluding currency translation effects and winding-down
costs the operating margin was comparable with the
previous year.
– The result after tax amounted to SEK 2,307 m (3,319),
corresponding to SEK 1.44 (2.04) per share.
– Converted into Swedish kronor the stock-in-trade
increased by 3 percent to SEK 41,738 m (40,358). The
composition of the stock-in-trade is good.
– Cash flow from operating activities, amounted to
SEK 8,215 m (12,257).
NINE MONTHS (1 DECEMBER 2023 – 31 AUGUST
2024)
– The H&M group’s net sales in the first nine months of the
financial year amounted to SEK 172,285 m (173,385). In
local currencies, net sales were flat compared with the
previous year.
– Gross profit increased to SEK 91,357 m (87,239). This
corresponds to a gross margin of 53.0 percent (50.3).
– Selling and administrative expenses increased by
1 percent in SEK. In local currencies the increase was
1 percent.
– Operating profit increased to SEK 12,682 m (10,205),
corresponding to an operating margin of 7.4 percent (5.9).
– The result after tax increased by 19 percent to
SEK 8,503 m (7,147), corresponding to SEK 5.29 (4.39) per
share.
– Cash flow from operating activities increased to SEK
24,782 m (24,742).
– Financial net cash amounted to SEK 9,396 m (13,555).
Cash and cash equivalents plus undrawn credit facilities
were SEK 41,838 m (43,918).
– The autumn collection has been very well received and sales in the month of September 2024 are expected to increase
by 11 percent in local currencies compared with the same month the previous year.
– In September a number of initiatives have been initiated, such as upgrades to physical stores, the roll-out of a new digital
experience, and the launch of the autumn collection with brand-reinforcing events and collaborations that will take place
during the autumn.
– The first flagship store for H&M Beauty in Sweden was opened in September.
– During the autumn H&M is opening digital stores on Douyin and Pinduoduo, two of China’s biggest e-commerce
platforms.
– The first H&M store in Brazil will open in São Paulo at the end of 2025.
– Based on the authorisation granted by the annual general meeting the board of directors has decided to buy back H&M
class B shares for SEK 1 billion, starting on 26 September 2024 and continuing until no later than 26 November 2024.
Nine months
Operating profit
SEK 12.7 billion
(SEK 10.2 billion)
Nine months
Gross margin
53.0%
(50.3%)
Nine months
Cash flow from
operating activities
SEK 24.8 billion
(SEK 24.7 billion)
“Despite a challenging start, we are concluding the third quarter with sales on par with last year in local currencies and
with good cost control. We are strengthening the H&M brand by investing in products, the shopping experience and
marketing, which we are already seeing start to make an impact and which will contribute to increased
sales and profitability.”
- Daniel Ervér, CEO.
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
4
Long-term investments strengthen
the H&M customer offering
Comments by Daniel Ervér, CEO
During the quarter we’ve primarily focused on creating a
strong assortment that gives the customer the best value for
money while also upgrading both the physical and digital
store experience. The quarter started with slow sales in June
due to cold weather in many of our key European markets. In
July and August we saw sales pick up, with even stronger
sales development in September. Despite a challenging start,
we conclude the quarter with sales on par with last year in
local currencies.
Cost control remained good, but operating profit was
negatively impacted by currency translation effects and
winding-down costs. Disregarding these effects the
operating margin in the third quarter was comparable with
last year, despite a significant increase in marketing costs in
the quarter. These aim to strengthen the H&M brand in the
long term, starting from the launch of the autumn collection
in September.
The autumn collection represents the best of H&M: fantastic
fashion and good quality at the best price, in a sustainable
way. With an even better experience in both our digital and
many of our physical stores, as well as collaborations and
unique events, we’ve raised the bar for H&M. Charli XCX is
the face of the campaign, supported by both global and local
artists and models. The first collections of the autumn have
been very well received by customers, with good sales and
strong resonance on social media.
2024 is a year in which we’re laying the foundation for future
growth. We’re increasing the pace of improvements in our
customer offering and deprioritising things that don’t
strengthen our brands or contribute to our sales and
profitability. Consumers’ living costs have remained high
during the year, and at the same time we continue to see
turbulence in the world around us. External factors have
impacted our sales revenue and purchasing costs more than
we expected. At present we estimate that this year’s
operating margin will be lower than 10 percent. We are
strengthening the H&M brand by investing in products, the
shopping experience and marketing and are already seeing
that the efforts we have started are having an effect. We are
confident that our plan will contribute to increased sales and
profitability.
===== SIDA 5 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
5
SALES
The H&M group’s net sales in the third quarter amounted to SEK 59,011 m (60,897). In local currencies net sales
were flat compared with the previous year. The quarter started with slow sales in June due to cold weather in many
key markets in Europe. Sales developed positively in July and August.
Net sales in the nine-month period amounted to SEK 172,285 m (173,385). In local currencies, net sales were flat
compared with the previous year.
Around 30 percent of sales were online in the first nine months of the financial year.
For Portfolio brands, which were up against high comparative figures from last year, net sales in the third quarter
decreased by 6 percent in SEK and by 4 percent in local currencies. In the nine-month period, net sales were flat
compared with the previous year in both SEK and in local currencies.
SALES PER REGION
*Nine-month period.
60,897
173,385
59,011
172,285
Δ - 3%
Δ - 1%
0
40,000
80,000
120,000
160,000
Q3 Nine months
2023
2024
SEK m
Q3 Q3 SEK LCY
NINE
MONTHS
NINE
MONTHS SEK LCY
NEW
STORES
(NET)
2024 2023 2024 2023 2024* 31 AUG 24 31 AUG 23
The Nordics 5,313 5,809 -9 -7 15,500 15,954 -3 -2 -8 381 393
Western Europe 19,731 20,581 -4 -2 57,496 57,723 0 -1 -26 1,025 1,051
Eastern Europe 5,417 5,306 2 4 15,559 14,093 10 8 6 481 478
Southern Europe 8,252 8,206 1 8 22,655 22,723 0 5 -15 593 612
North and South America 13,124 13,445 -2 2 38,857 39,818 -2 -2 8 753 735
Asia, Oceania and Africa 7,174 7,550 -5 -2 22,218 23,074 -4 -1 -36 1,065 1,106
Total 59,011 60,897 -3 0 172,285 173,385 -1 0 -71 4,298 4,375
NUMBER OF STORES
CHANGE IN % CHANGE IN %
===== SIDA 6 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
6
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 amounted to SEK 30,133 m (31,015) for the third quarter, corresponding to a gross margin of
51.1 percent (50.9). The negative overall effect of external factors that influenced purchasing costs in the quarter
compared with the previous year was offset by continued improvement work in the supply chain.
For the nine-month period gross profit increased to SEK 91,357 m (87,239), corresponding to a gross margin of
53.0 percent (50.3).
The cost of markdowns in relation to sales in the third quarter 2024 increased somewhat compared with the
corresponding quarter the previous year.
For the goods that will be sold in the fourth quarter of 2024, the overall effect of external factors is expected to be
negative compared with the previous year.
31,015
87,239
30,133
91,357
51.1%
53.0%
50.9%
50.3%
0
20,000
40,000
60,000
80,000
100,000
Q3 Nine months
2023
2024
SEK m
===== SIDA 7 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
7
SELLING AND ADMINISTRATIVE EXPENSES
Selling and administrative expenses increased in the third quarter by 1 percent to SEK 26,602 m (26,271). In local
currencies, these expenses increased by 4 percent.
Selling and administrative expenses for the third quarter were impacted by long-term marketing investments and
winding-down costs, mainly for Afound, totalling around SEK 550 m, a large part of which consisted of the long-term
marketing investments. Already at the beginning of the fourth quarter positive effects of these investments in
marketing can be seen in connection with the launch of the autumn collection.
The cost and efficiency programme is fully implemented and operational cost control remains good.
For the nine-month period, selling and administrative expenses increased by 1 percent in both SEK and local
currencies compared with the same period the previous year.
26,271
78,016
26,602
78,612
Δ + 1%
Δ + 1%
0
20,000
40,000
60,000
80,000
Q3 Nine months
2023
2024
SEK m
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
8
OPERATING PROFIT AND OPERATING MARGIN
Operating profit in the third quarter amounted to SEK 3,507 m (4,739), corresponding to an operating margin of
5.9 percent (7.8).
The strengthened Swedish krona resulted in negative currency effects that impacted operating profit in the third
quarter compared with the same quarter last year. Winding-down costs also impacted earnings negatively.
Excluding currency translation effects and winding-down costs the operating margin was comparable with last year:
• Currency effects: translation effects arise when converting income, expenses, liabilities and receivables
from local currencies into SEK. Currency translation of the quarter’s sales, gross profit and selling and
administrative expenses from local currencies resulted in lower reported amounts in SEK. In addition,
exchange losses on intragroup payables and receivables had a negative impact on operating profit for the
quarter.
• Winding-down costs: as part of deprioritising things that do not contribute to long-term sales and
profitability, it was decided in the quarter to wind down Afound.
Operating profit for the nine-month period increased to SEK 12,682 m (10,205), corresponding to an operating
margin of 7.4 percent (5.9).
4,739
10,205
3,507
12,682
Δ - 26%
Δ + 24%
0
4,000
8,000
12,000
Q3 Nine months
2023
2024
SEK m
===== SIDA 9 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
9
STOCK-IN-TRADE
The stock-in-trade increased by 3 percent to SEK 41,738m (40,358). Currency adjusted the stock-in-trade increased
by 5 percent compared with the previous year. The increase is mainly due to extended transport times associated
with the situation in the Red Sea and to higher sales ambitions for the autumn assortment. The impact of increased
delivery times on the stock level as at 31 August amounted to around SEK 2 billion.
The composition of the stock-in-trade is assessed to be good.
The stock-in-trade in SEK represented 17.8 percent (17.1) 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 improvement of the stock-in-trade situation. The company continues to plan for extended transport
times and to manage disruption in the supply chain.
40,358 41,738
Δ + 3%
0
20,000
40,000
31 Aug 2023
31 Aug 2024
SEK m
===== SIDA 10 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
10
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. As previously communicated, the company is stepping up the pace of investment in physical
and digital stores during 2024 to provide an even more inspiring experience while also optimising 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 at the end of 2024. In the early part of the
fourth quarter H&M has expanded its digital presence on Ajio.com in India and Trendyol.com in Turkey. During the
autumn H&M will launch digital stores on Douyin and Pinduoduo, two of China’s biggest e-commerce platforms.
Arket opened its first stores in Spain, Poland and Italy during the quarter. Weekday and Monki launched on
Boozt.com in September, while Arket has launched on ASOS.com. The first H&M store in Brazil will open in São
Paulo towards the end of 2025. The store will open in Iguatemi, one of the most iconic and unique shopping centres
in Brazil.
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 right store portfolio in each market. The H&M group’s
contracts allow around a third of leases to be renegotiated or exited each year. After reviewing priorities as regards
things that do not strengthen the H&M brand or contribute to each brand’s long-term sales and profitability,
additional stores have been identified for consolidation. For 2024 the plan is to open around 100 new stores and
close around 200 stores, making a net decrease of around 100 stores. Most of the openings will be in growth
markets, while the closures will mainly be in established markets.
STORE COUNT AND MARKETS BY BRAND
As at 31 August 2024 the H&M group had 4,298 (4,375) stores, i.e. the total number of stores has decreased by
77 stores compared with the same point in time the previous year, which corresponds to a reduction of
approximately 2 percent. During the first nine months of the current financial year 61 (66) new stores have opened
and 132 (156) stores have closed. A total of 259 (282) of the group’s stores are operated by franchise partners.
* Concept stores. H&M HOME is also available through shop-in-shop in 455 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
Q3 NINE MONTHS 31 AUG 2024 31 AUG 2023
H&M -18 -58 3,814 3,875 77 60
COS -2 -9 236 248 47 38
Monki -3 -8 56 69 15 29
Weekday -2 -6 47 53 14 29
& Other Stories 0 -1 71 70 25 32
ARKET 3 9 39 27 17 31
Afound 0 0 0 0 0 7
H&M HOME* 1 2 35 33 59 45
Sellpy 0 0 0 0 0 24
Total -21 -71 4,298 4,375
NUMBER OF MARKETS
31 AUG 2024
2024 (NET) TOTAL NUMBER OF STORES
NEW STORES
===== SIDA 11 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
11
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 amounted to SEK 24,782 m (24,742). Operating
working capital amounted to SEK 18,875 m (17,347), corresponding to an increase of SEK 1,528 m compared with
the previous year. Most of the change is explained by development of the stock-in-trade.
Liquidity and debt financing
The H&M group’s liquidity remains very good. As at 31 August 2024 cash and cash equivalents amounted to
SEK 23,698 m (24,971). In addition, the group has undrawn credit facilities of SEK 18,140 m (18,947). The total liquidity
buffer, i.e. cash and cash equivalents plus undrawn credit facilities, amounted to SEK 41,838 m (43,918).
Net debt including lease liabilities in relation to EBITDA amounted to 1.3 (1.5) with a net cash position of SEK 9,396 m
(13,555). Debt levels are well within 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 14,303 m (11,417) as at 31 August 2024. The average maturity of interest-bearing liabilities amounted to 5.5 (3.7)
years as a result of a net decrease in current liabilities of around SEK 2.0 billion through repayments during the
quarter.
A maturity analysis of outstanding interest-bearing liabilities and undrawn credit facilities as at 31 August 2024 is
given in the table below. No significant financing activities were carried out during the quarter.
SEK m 2024-08-31 2023-08-31 2023-11-30
Accounts receivable 2,969 2,596 3,301
Stock-in-trade 41,738 40,358 37,358
Accounts payable -25,832 -25,607 -21,027
Operating working capital 18,875 17,347 19,632
Year COMMERCIAL PAPERS BONDS (EMTN)
LOANS FROM CREDIT
INSTITUTIONS
UNUSED CREDIT
FACILITIES
2024 - - - -
2025 - - - -
2026 - - 2,157 3,401
2027 - - - -
2028 - - 245 -
2029 - 5,669 - 14,739
2030 - - - -
2031 - 6,232 - -
Total SEK m - 11,901 2,402 18,140
===== SIDA 12 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
12
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 percent (24) 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
Following implementation of the resolution passed by the annual general meeting on 3 May 2024 to cancel
19,144,612 class B treasury shares repurchased as part of H&M’s buyback programme, the total number of shares in
H&M is 1,610,542,225 shares – of which 194,400,000 are class A shares and 1,416,142,225 are class B shares – and
the total number of votes is 3,360,142,225, as communicated in a press release on 31 May 2024. Thereafter the
H&M group holds no treasury shares.
The board of directors has decided to use the authorisation from the 2024 annual general meeting to initiate a
buyback programme of its own class B shares amounting to SEK 1 billion, in view of the H&M group’s strong financial
position and since surplus liquidity has been identified. The programme starts on 26 September 2024 and will
continue until no later than 26 November 2024. For more information see the separate press release issued on
26 September 2024.
CURRENT QUARTER
The autumn collection has been very well received and sales in the month of September 2024 are expected to
increase by 11 percent in local currencies compared with the same month the previous year.
The cost of markdowns in relation to sales in the fourth quarter is expected to increase somewhat compared with
the corresponding quarter the previous year.
The long-term investments in marketing are continuing in the fourth quarter, with costs expected to be a little
higher than in the third quarter.
The company is monitoring developments in the Red Sea and the global freight market and acts to minimise impact
on the company’s product availability, freight costs and stock levels. The company is also taking action to manage
disruption in the supply chain.
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 13 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
13
CALENDAR
30 January 2025 Full-year report, 1 Dec 2023 – 30 Nov 2024
27 March 2025 Three-month report, 1 Dec 2024 – 28 Feb 2025
27 March 2025 Annual and Sustainability report 2024
7 May 2025 Annual general meeting 15:00 (CEST), Erling Persson Hall, Aula Medica, Solna
Stockholm, 25 September 2024
Board of Directors
COMMUNICATION IN CONJUNCTION WITH THE NINE-MONTH REPORT
The nine-month report, i.e., 1 December 2023 – 31 August 2024, will be published at 08:00 CEST on 26 September
2024, 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 Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.
For log in details for the telephone conference please register via this link:
https://app.webinar.net/XoAgzndE9nm
To book interviews in conjunction with the nine-month report on 26 September 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.
===== SIDA 14 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
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, 2023 –
August 31, 2024. 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 25, 2024
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 26 September 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 and ARKET as well as
Sellpy. For further information, visit hmgroup.com.
===== SIDA 15 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
15
GROUP INCOME STATEMENT IN SUMMARY (SEK M)
For information about depreciation, amortisation and write-downs, see note 4.
* Income from investments in associated companies and joint ventures for the nine-month period 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.
Q3 2024 Q3 2023
NINE MONTHS
2024
NINE MONTHS
2023
2022-12-01-
2023-11-30
Net sales, note 3 59,011 60,897 172,285 173,385 236,035
Cost of goods sold, note 4 -28,878 -29,882 -80,928 -86,146 -115,139
GROSS PROFIT 30,133 31,015 91,357 87,239 120,896
Gross margin, % 51.1 50.9 53.0 50.3 51.2
Selling expenses, note 4 -24,167 -23,648 -70,704 -70,131 -96,435
Administrative expenses, note 4 -2,435 -2,623 -7,908 -7,885 -10,895
Result from investments in associated
companies and joint ventures* -24 -5 -63 982 971
OPERATING PROFIT 3,507 4,739 12,682 10,205 14,537
Operating margin, % 5.9 7.8 7.4 5.9 6.2
Net financial items -422 -366 -1,323 -1,111 -1,527
PROFIT AFTER FINANCIAL ITEMS 3,085 4,373 11,359 9,094 13,010
Tax -778 -1,054 -2,856 -1,947 -4,287
PROFIT FOR THE PERIOD 2,307 3,319 8,503 7,147 8,723
Attributable to:
The shareholders of H & M Hennes &
Mauritz AB 2,319 3,328 8,536 7,165 8,752
Non-controlling interest -12 -9 -33 -18 -29
Earnings per share, SEK** 1.44 2.04 5.29 4.39 5.35
Average number of shares outstanding,
thousands** 1,610,542 1,629,687 1,612,843 1,629,687 1,629,097
===== SIDA 16 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (SEK M)
Q3 2024 Q3 2023
NINE MONTHS
2024
NINE MONTHS
2023
2022-12-01-
2023-11-30
PROFIT FOR THE PERIOD 2,307 3,319 8,503 7,147 8,723
Other comprehensive income
Items that are or may be reclassified to profit
or loss
Translation differences -1,099 -324 -574 1,432 12
Change in hedging reserves 1,144 -133 205 -879 413
Tax attributable to change in hedging
reserves -235 27 -42 181 -85
Share of OCI related to associated
companies and joint ventures 0 - 0 - -
Items that will not be reclassified to profit or
loss
Remeasurement of defined benefit pension
plans -128 -43 -185 -38 -41
Tax related to the above remeasurement 32 10 46 9 10
Remeasurement of financial assets, note 2 -36 117 24 -249 -599
OTHER COMPREHENSIVE INCOME -322 -346 -526 456 -290
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD 1,985 2,973 7,977 7,603 8,433
Attributable to:
The shareholders of H & M Hennes &
Mauritz AB 1,997 2,982 8,010 7,621 8,462
Non-controlling interest -12 -9 -33 -18 -29
===== SIDA 17 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
17
GROUP BALANCE SHEET IN SUMMARY (SEK M)
* Equity attributable to the shareholders of H & M Hennes & Mauritz AB amounts to SEK 43,169 m (47,785) and to non-controlling interests SEK 62 m (93).
** Interest-bearing long-term liabilities amounts to SEK 61,340 m (59,172), excluding leasing SEK 14,779 m (8,757) of which provisions for
pensions SEK 701 m (449).
*** Interest-bearing current liabilities amounts to SEK 11,959 m (15,780), excluding leasing SEK 0 m (3,110).
GROUP CHANGES IN EQUITY IN SUMMARY (SEK M)
ASSETS 2024-08-31 2023-08-31 2023-11-30
NON-CURRENT ASSETS
Intangible non-current assets 9,015 10,164 9,725
Property, plant and equipment 26,276 25,120 25,242
Right-of-use assets 53,639 58,448 56,294
Non-current financial assets, note 2 2,960 2,718 2,572
Other non-current assets 6,924 7,713 6,911
98,814 104,163 100,744
CURRENT ASSETS
Stock-in-trade 41,738 40,358 37,358
Current receivables 16,373 18,051 16,773
Cash and cash equivalents 23,698 24,971 26,398
81,809 83,380 80,529
TOTAL ASSETS 180,623 187,543 181,273
EQUITY AND LIABILITIES
Equity* 43,231 47,878 47,601
Long-term liabilities** 17,593 12,301 17,016
Long-term leasing liabilities** 46,337 50,415 48,729
Short-term liabilities*** 61,503 64,279 55,768
Current leasing liabilities*** 11,959 12,670 12,159
TOTAL EQUITY AND LIABILITIES 180,623 187,543 181,273
2024-08-31 2023-08-31 2023-11-30
Shareholders' equity at the beginning of the financial year 47,601 50,757 50,757
Total comprehensive income for the period 7,977 7,603 8,433
Transactions with non-controlling interests 0 111 111
Dividend -10,468 -10,593 -10,577
Repurchase of shares -1,879 - -1,123
Shareholders' equity at the end of the period 43,231 47,878 47,601
===== SIDA 18 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
18
GROUP CASH FLOW STATEMENT IN SUMMARY (SEK M)
* Interest paid for the group amounts to SEK 520 m (241). Interest expense related to leases amounts to SEK 1,493 m (1,256) for the group. Received interest
for the group amounts to SEK 690 m (386).
NINE MONTHS 2024 NINE MONTHS 2023
Operating activities
Profit after financial items* 11,359 9,094
Adjustment for non-cash items
Provisions for pensions 141 69
Other provisions 367 -437
Depreciation, amortisation and write-downs 16,278 16,725
Other non-cash items 63 -982
Taxes paid -1,333 -3,781
Cash flow from operating activites before changes in working capital 26,875 20,688
Cash flow from changes in working capital
Operating receivables 23 25
Stock-in-trade -4,708 3,027
Operating liabilities 2,592 1,002
CASH FLOW FROM OPERATING ACTIVITIES 24,782 24,742
Investing activities
Investments in intangible fixed assets -1,010 -797
Investments in tangible fixed assets -6,049 -4,799
Other -514 -260
CASH FLOW FROM INVESTING ACTIVITIES -7,573 -5,856
Financing activities
Change in interest-bearing liabilities -3,057 -44
Amortisation lease -9,467 -9,663
Dividend -5,235 -5,297
Repurchase of shares -1,927 -
CASH FLOW FROM FINANCING ACTIVITIES -19,686 -15,004
CASH FLOW FOR THE PERIOD -2,477 3,882
Cash and cash equivalents at beginning of the financial year 26,398 21,707
Cash flow for the period -2,477 3,882
Exchange rate effect -223 -618
Cash and cash equivalents at end of the period 23,698 24,971
===== SIDA 19 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
19
FIVE YEAR SUMMARY
NINE MONTHS, 1 DECEMBER – 31 AUGUST
* 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 134,482 142,154 161,120 173,385 172,285
Change net sales from previous year in SEK, % -21 6 13 8 -1
Change net sales previous year in local currencies, % -21 13 8 0 0
Operating profit, SEK m -798 8,996 6,348 10,205 12,682
Operating margin, % -0.6 6.3 3.9 5.9 7.4
Depreciation, amortisation and write-downs for the
period, SEK m 20,084 16,781 16,788 16,725 16,278
Profit after financial items, SEK m -1,613 8,297 5,753 9,094 11,359
Profit after tax, SEK m -1,242 6,389 4,430 7,147 8,503
Cash and cash equivalents, SEK m 12,138 35,298 27,547 24,971 23,698
Stock-in-trade, SEK m 42,076 36,867 47,141 40,358 41,738
Equity, SEK m 52,786 64,409 54,071 47,878 43,231
Average number of shares outstanding, thousands* 1,655,072 1,655,072 1,653,960 1,629,687 1,612,843
Earnings per share, SEK* -0.75 3.86 2.68 4.39 5.29
Cash flow from operating activities per share, SEK* 9.66 22.48 11.02 15.18 15.37
Number of shares outstanding as of the closing day,
thousands* 1,655,072 1,655,072 1,645,494 1,629,687 1,610,542
Equity per share, SEK* 31.89 38.92 32.86 29.38 26.84
Share of risk-bearing capital, % 31.6 36.9 30.4 27.3 25.3
Equity/assets ratio, % 29.2 34.8 28.2 25.5 23.9
Total number of stores 5,043 4,856 4,664 4,375 4,298
Rolling 12 months
Average number of shares outstanding, thousands* 1,655,072 1,655,072 1,654,237 1,637,189 1,616,373
Earnings per share, SEK* 1.79 5.36 5.47 3.84 6.26
Return on equity, % 5.6 15.1 15.3 12.3 22.1
Return on capital employed, % 4.6 9.6 10.1 9.3 15.0
===== SIDA 20 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
20
PARENT COMPANY INCOME STATEMENT IN SUMMARY (SEK M)
* Revenue from interests in group companies in the quarter consists of SEK 1,066 m (349) and for the nine-month period of SEK 1,617 m (693).
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME (SEK M)
Q3 2024 Q3 2023
NINE MONTHS
2024
NINE MONTHS
2023
2022-12-01-
2023-11-30
Net sales 593 575 1,721 1,649 2,264
GROSS PROFIT 593 575 1,721 1,649 2,264
Administrative expenses -34 -21 -133 -82 -108
OPERATING PROFIT 559 554 1,588 1,567 2,156
Net financial items* 940 303 1,435 520 11,224
PROFIT AFTER FINANCIAL ITEMS 1,499 857 3,023 2,087 13,380
Year-end appropriations - - - - -1,496
Tax -90 -104 -312 -286 -117
PROFIT FOR THE PERIOD 1,409 753 2,711 1,801 11,767
Q3 2024 Q3 2023
NINE MONTHS
2024
NINE MONTHS
2023
2022-12-01-
2023-11-30
PROFIT FOR THE PERIOD 1,409 753 2,711 1,801 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 -7 2 -7 0 -14
Tax related to the above remeasurement 1 0 1 0 3
OTHER COMPREHENSIVE INCOME -6 2 -6 0 -11
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD 1,403 755 2,705 1,801 11,756
===== SIDA 21 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
21
PARENT COMPANY BALANCE SHEET IN SUMMARY (SEK M)
* All long-term liabilities are interest-bearing.
** Interest-bearing current liabilities amounts to SEK 0 m (2,793). Dividend to be paid amounts to SEK 5,234 m (5,297).
2024-08-31 2023-08-31 2023-11-30
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 133 144 140
Other non-current assets 2,043 1,373 1,595
2,176 1,517 1,735
CURRENT ASSETS
Current receivables 23,557 20,095 30,812
Cash and cash equivalents 0 1,009 2
23,557 21,104 30,814
TOTAL ASSETS 25,733 22,621 32,549
EQUITY AND LIABILITIES
Equity 6,717 7,512 16,360
Untaxed reserves 17 21 17
Long-term liabilities* 13,327 7,281 13,195
Short-term liabilities** 5,672 7,807 2,977
TOTAL EQUITY AND LIABILITIES 25,733 22,621 32,549
===== SIDA 22 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
22
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 was subsequently
written down in the first quarter of the financial year. Fair value amounts to SEK 0 m (393) as at 31 August 2024.
The fair value of the remaining shares and interests based on level 3 inputs according to IFRS 13 amounts in total to
SEK 2,691 m (2,140) as at 31 August 2024, the largest investments being Klarna at SEK 766 m (456), Sheertex at
SEK 575 m (526), and Instabee at SEK 188 m (428). The effect of measurement of the group’s other shares and
interests is reported in other comprehensive income and amounts to SEK -36 m (117) for the third quarter.
Currency derivatives are measured at fair value based on level 2 inputs in the IFRS 13 hierarchy. As at 31 August
2024 forward contracts with a positive market value amount to SEK 753 m (1,105), reported under other current
receivables. Forward contracts with a negative market value amount to SEK 778 m (1,255), which is recognised in
other current liabilities.
In hedge accounting, derivatives are classified as cash flow hedges or as fair value hedges. As at 31 August 2024 the
nominal amount of outstanding interest rate swaps was SEK 554 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 800 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 23 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
23
NOTE 3. SEGMENT REPORTING (SEK M)
* South Africa
NINE MONTHS 2024 NINE MONTHS 2023
Asia and Oceania
External net sales 21,343 22,216
Operating profit 786 736
Operating margin, % 3.7 3.3
Europe and Africa*
External net sales 112,084 111,350
Operating profit 4,771 3,099
Operating margin, % 4.3 2.8
North and South America
External net sales 38,858 39,819
Operating profit 597 529
Operating margin, % 1.5 1.3
Group Functions
Net sales to other segments 57,709 59,126
Operating profit 6,528 5,841
Operating margin, % 11.3 9.9
Eliminations
Net sales to other segments -57,709 -59,126
Total
External net sales 172,285 173,385
Operating profit 12,682 10,205
Operating margin, % 7.4 5.9
Net financial items -1,323 -1,111
Profit after financial items 11,359 9,094
===== SIDA 24 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
24
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.
Q3 2024 Q3 2023
NINE MONTHS
2024
NINE MONTHS
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 253 236 721 689 935
Selling expenses 1,790 1,962 5,395 5,862 7,742
Administrative expenses 96 109 287 332 438
Total 2,139 2,307 6,403 6,883 9,115
Right-of-use assets
Cost of goods sold 319 438 968 807 1,107
Selling expenses 2,823 2,912 8,530 8,667 11,552
Administrative expenses 93 114 304 307 411
Total 3,235 3,464 9,802 9,781 13,070
TOTAL DEPRECIATIONS AND
AMORTISATIONS 5,374 5,771 16,205 16,664 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 20 0 25 8 69
Selling expenses 34 43 21 206 605
Administrative expenses 5 3 14 75 21
Total 59 46 60 289 695
Right-of-use assets
Cost of goods sold - - - - -
Selling expenses 13 -90* 13 -229* 74
Administrative expenses - - - - -
Total 13 -90 13 -229 74
TOTAL WRITE-DOWNS AND LOSSES AT
DISPOSALS 72 -44 73 60 770
TOTAL DEPRECIATIONS,
AMORTISATIONS, WRITE-DOWNS AND
LOSSES AT DISPOSALS
5,446 5,727 16,278 16,724 22,955
===== SIDA 25 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
25
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
27
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
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Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
29
===== SIDA 30 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
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===== SIDA 31 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
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===== SIDA 32 =====
Nine-month report 2024 (1 Dec 2023 – 31 Aug 2024)
32