Q3 Profit After Tax Reaches SEK 3.3bn (£250m) with Gross Profit at SEK 31bn (£2.3bn)

  • H&M’s profit after tax increased by 61% to SEK 7bn (£524m) for the nine months ended August 31, 2023
  • Gross profit rose to SEK 87bn (£6.5bn) with a gross margin of 50.3%
  • Operating profit increased to SEK 10.2bn (£764m) and an operating margin of 5.9%
  • One-time costs for Russia amounted to SEK 1.8bn (£135m)
  • Net sales increased by 8% to SEK 173.4bn (£12.9bn) but were flat in local currencies
  • Q3 profit after tax was SEK 3.3bn (£250m) with a gross profit of SEK 31bn (£2.3bn)
  • CEO Helena Helmersson highlights focus on profitability and inventory efficiency
  • Sales in Q3 started strong due to pent-up demand for summer garments
  • Weaker end to the quarter due to temporary reopening in Russia in August 2022
  • Autumn season start delayed due to hot weather in European markets
  • Offering customers best price and value is crucial amid high inflation

H&M has reported a significant increase in profits, with the company’s profit after tax rising by 61% to SEK 7bn (£524m) for the nine months ended August 31, 2023. The gross profit increased to SEK 87bn (£6.5bn), corresponding to a gross margin of 50.3%. Operating profit reached SEK 10.2bn (£764m) with an operating margin of 5.9%. One-time costs for Russia amounted to SEK 1.8bn (£135m). Net sales increased by 8% to SEK 173.4bn (£12.9bn), but remained flat in local currencies. In Q3 alone, the company posted a profit after tax of SEK 3.3bn (£250m) and a gross profit of SEK 31bn (£2.3bn). CEO Helena Helmersson emphasized the focus on profitability and inventory efficiency, contributing to strong cash flow and good profit development. The company is working towards its goals for long-term profitable growth by improving customer offering and integrating the two channels. Sales in Q3 started strongly due to pent-up demand for summer garments following a cold May in major markets but experienced a weaker end due to temporary reopening in Russia in August 2022. The start of the autumn season has been delayed by unusually hot weather in many European markets. In times of high inflation, offering customers the best price and value is more important than ever.

Factuality Level: 10
Factuality Justification: The article provides accurate information about H&M’s financial performance, including specific numbers and quotes from the CEO. It does not contain any irrelevant or misleading details, sensationalism, redundancy, or personal opinions presented as facts. The reporting is objective and well-researched.
Noise Level: 2
Noise Justification: The article provides relevant information about H&M’s financial performance and the company’s focus on profitability and inventory efficiency. It also includes quotes from the CEO that offer insight into their strategies and market conditions. The content is concise and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: H&M’s profit after tax, gross profit, operating profit, net sales, and one-time costs for Russia impact financial markets and the company itself
Financial Rating Justification: The article discusses H&M’s financial performance, including profits, gross profit, net sales, and operational changes, which are all relevant to the company’s financial health and can impact its stock price and overall market value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

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