Second-Hand E-Commerce and Robust Growth Drive H&M’s Success
- H&M’s Q1 operating profit increased to SEK 725m (£56.4m) due to Sellpy platform
- Sellpy, one of Europe’s largest second-hand platforms, contributed around SEK 1bn (£77m) in earnings
- Group sales rose by 12% to SEK 54,872m (£4.82bn)
- COS, Monki, Weekday, & Other Stories and Arket saw a 19% sales growth
- H&M brand’s investments in tech and supply chain improved precision and response times
- Cost-cutting and efficiency program progressing well
- Robust financial position, stable cash flow, and balanced inventory
- Expected local currency sales increase of 4% for March compared to last year
H&M has reported a significant increase in its first quarter operating profit, reaching SEK 725m (£56.4m), thanks to the earnings from the second-hand platform Sellpy. The consolidation of Sellpy contributed around SEK 1 billion (£77m) during the period. Group sales increased by 12% to SEK 54,872m (£4.82bn), with a rise of 3% in local currencies, excluding Russia, Belarus, and Ukraine. The portfolio brands COS, Monki, Weekday, & Other Stories, and Arket experienced strong growth of 19% in SEK and 11% in local currencies, making a significant contribution to the group’s overall growth. H&M’s investments in technology, AI, and supply chain have improved precision and response times for their products. The company has a robust financial position, stable cash flow, and well-balanced inventory, which positions it well for continued sustainable and profitable growth. CEO Helena Helmersson stated that they are on track to achieve an operating margin of 10% next year.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about H&M’s financial performance, including specific numbers and growth rates for various aspects of their business. It also includes quotes from the CEO that support the company’s outlook on future growth.
Noise Level: 3
Noise Justification: The article provides relevant information about H&M’s financial performance and growth, including specific numbers and contributions from its subsidiaries. It also mentions challenges faced due to external factors and expectations for future sales. The focus is on the company’s operations and financial position, making it informative without being overly noisy or irrelevant.
Financial Relevance: Yes
Financial Markets Impacted: H&M’s operating profit increased by 58.3% to SEK 725m (£56.4m) in the first quarter, impacting its financial performance and stock market value.
Financial Rating Justification: The article discusses H&M’s financial performance, including an increase in operating profit and sales growth, which directly pertains to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
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