#Retail & Brands

2024-03-28

H&M Hennes & Mauritz with increased profit in first quarter 24

In the first quarter (1 December 2023 – 29 february 2024) the H&M group’s net sales amounted to SEK 53,699 m (54,872). Gross profit increased by 7 percent to SEK 27,655 m (25,886). This corresponds to a gross margin of 51.5 percent (47.2). Operating profit amounted to SEK 2,077 m (725), corresponding to an operating margin of 3.9 percent (1.3). Adjusted for result from investments in associated companies and joint ventures of SEK -14 m (999) the operating profit amounted to SEK 2,091 m (-274), corresponding to an improvement in profit of SEK 2,365 m.

The result after tax increased to SEK 1,201 m (540), corresponding to SEK 0.75 (0.33) per share. Cash flow from operating activities amounted to SEK 3,967 m (4,986). Financial net cash amounted to SEK 6,585 m (10,424). Cash and cash equivalents plus undrawn credit facilities were SEK 38,710 m (38,923). Currency adjusted the stock-in-trade decreased by 7 percent compared with the previous year. Converted into SEK the stock-in-trade decreased by 8 percent to SEK 37,630 m (41,040). The stock-in-trade in SEK represented 16.0 percent (17.9) of rolling 12-month sales.

The H&M group’s sales in the period 1 – 25 March 2024 increased by 2 percent in local currencies compared with the same period the previous year. As previously communicated, the H&M group and Vargas Holding have co-founded Syre, which aims to rapidly scale textile-to-textile recycling of polyester and contribute to a more sustainable textile industry.

Today the H&M group publishes its annual and sustainability report 2023. Among other things, the report shows a 22 percent reduction in greenhouse gas emissions in 2023. In relation to sales in SEK the decrease was 23 percent.*

The annual general meeting will be held on 3 May 2024 to resolve, among other things, on the board’s proposed dividend of SEK 6.50 per share, to be paid in two instalments, and on a general authorisation allowing the board to buy back the group’s own B shares in the period up to the 2025 annual general meeting. This general authorisation is one of the tools for the board to use if surplus liquidity is identified. If the annual general meeting authorises the board and the board chooses to utilise this authority, amounts and other details will be communicated.

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

* Refers to science-based targets for the company’s entire value chain in scope 3 and excludes the use of sold products. The baseline is 2019. By 2030 at the latest the H&M group is to reduce its scope 1, 2 and 3 greenhouse gas emissions by 56 percent.

** Stock-in-trade in SEK as a share of rolling 12 months sales.

textile.4U publishes special edition “Top 100 Textile Recycling Companies 2025”

With a comprehensive 176-page special edition, textile.4U is dedicating its latest issue entirely to one of the most dynamic and influential topics in today’s textile industry: textile recycling. The new issue, published exclusively in high-quality print, presents the Top 100 textile recycling companies researched and selected by TexData – organizations that already play a key role in the transition to circular textiles or are expected to have a significant impact in the near future.

Responsible Textile Recovery Act of 2024 signed by Governor

Senator Josh Newman (D-Fullerton) is proud to announce that Senate Bill 707 (SB 707), the Responsible Textile Recovery Act of 2024, has been signed into law by the Governor of California, Gavin Newsom. This groundbreaking legislation establishes the country’s first Extended Producer Responsibility (EPR) textile recycling program, marking a significant step forward in the state’s efforts to combat waste and promote sustainability.

Modtissimo promotes sustainability with 28 coordinates in the Green Circle

Modtissimo is proving more and more to be a textile and clothing show that delivers the latest innovations in the area of sustainability, with the iTechStyle Green Circle being the main showcase for companies' creations. In this 60+4 edition, taking place on 12 and 13 September, 28 coordinates will be exhibited in a section organised by CITEVE and curated by Paulo Gomes.

The EU and Egypt team up to mobilise private sector investments at Investment Conference and sign a Memorandum of Understanding underpinning €1 billion in macro-financial assistance for Egypt

At the EU-Egypt Investment Conference, co-organised by the EU and the Government of Egypt on 29-30 June, the EU and Egypt are teaming up to intensify private sector investments in Egypt. They are also signing a Memorandum of Understanding (MoU) for the disbursement to Egypt of up to €1 billion in Macro-Financial Assistance.

Recover™ secures multi-year recycled cotton agreement with H&M

Recover™ has signed a multi-year agreement with H&M to support the integration of its recycled cotton fiber, RCotton, for use in H&M’s products. Since early 2024, H&M and Recover™ have collaborated on product development, which now enables scaled commercial introduction of Recover™ mechanically recycled cotton into H&M’s collections.

GORE-TEX® KIDSWEAR launches innovative membership scheme for kids’ jackets

With its revolutionary new membership model, GORE-TEX® Kidswear now offers families a simple, flexible and sustainable way of kitting out their children in top-quality jackets. It is aimed at the parents of children aged between five and ten and kicks off with a choice of functional winter jackets.

Circulose restarts commercial-scale production at Ortviken plant in Sundsvall

Circulose today announced the restart of its commercial-scale production plant at Ortviken in Sundsvall, Sweden, marking a significant step in scaling next-generation materials for the global fashion industry. The company plans to resume production of CIRCULOSE®, a recycled pulp made entirely from discarded cotton textiles, in the fourth quarter of 2026.

VIATT 2026 to debut German Pavilion, strengthening European participation alongside key Asian textile hubs

Vietnam’s textile and garment sector continues to be a major contributor to the country’s economic growth, with export revenues expected to reach USD 46 billion in 2025, a 5.6% increase from 2024 . From 26 – 28 February, the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) is set to contribute to economic growth opportunities by accelerating digital transformation and green transition across the entire textile value chain. The upcoming edition will respond to the rising demand for advanced technologies and sustainable materials with the introduction of the German Pavilion, alongside strong exhibitor participation from key Asian sectors, as well as several high-profile fringe events.

Sustainable, lightweight, and sound absorbing: Polyester-based front trunk solution for BEVs

As car manufacturers look to further reduce their carbon footprint, Autoneum has developed an innovative front trunk solution for battery electric vehicles (BEVs), made entirely from polyester-based textile. The Ultra-Silent Frunk offers significant weight reduction, improved acoustic and thermal insulation, and uses up to 70 percent recycled material, supporting sustainable and efficient vehicle design. Autoneum, global technology leader in acoustic and thermal management for vehicles, has already received orders for the new frunk from three major OEMs in Asia and Europe to be built in three BEV models. Series production for two BEVs has been underway in China and Germany since last year.