#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.

“Production is a product”

From technical textiles and AI-driven robotics to the limitations of textile circularity: Professor Dr Thomas Gries looks back on more than two decades of development at ITA Aachen. In the interview, he explains why production technology remains a decisive success factor, discusses international collaborations and innovation ecosystems, and shares his views on the transformation of production landscapes and the challenges facing an increasingly regulated industry.

“We need to move away from the price trap and return to a value-driven mindset.”

With its new Textile Innovation Center, KARL MAYER is sending a strong signal for innovation, collaboration, and the future of textile applications. In this interview, Karl Josef Mayer discusses new opportunities in warp knitting, the processing of staple fibres, recycling, the changing role of machinery manufacturers, and why the textile industry must once again focus more strongly on the value of textiles. by Oliver Schmidt

“Innovation, resilience and international experience remain the great strengths of the Swiss textile machinery industry”

Geopolitical uncertainty, growing competitive pressure from China, new free trade agreements and the shift towards a circular economy are currently reshaping the global textile industry. In this interview, Cornelia Buchwalder discusses the current mood within the Swiss textile machinery sector, the industry’s distinctive innovative strength, new market opportunities in India and Asia, and the technological trends that could shape the upcoming trade fair cycle leading up to ITMA 2027.

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.

2026 general meeting of the Friends and Supporters of RWTH Aachen at ITA

The Friends and Supporters of RWTH Aachen e. V. (proRWTH) looked back on a successful year of support at their 2026 general meeting. The meeting took place at Institut für Textiltechnik (ITA) of RWTH Aachen and was combined with a joint session of the Executive Board and the Administrative Board. Before the general meeting began, participants were given a guided tour of ITA, providing them with fascinating insights into current research and development topics in textile engineering.

Cotton ConneXions Insight to Impact brings supply chain leaders together around cotton innovation

Cotton Incorporated’s Cotton ConneXions Insight to Impact brought together more than 300 industry leaders from 140 companies across 10 countries, including more than 45 top global brands and sourcing organizations, underscoring strong global interest in cotton-rich product development, sourcing and supply chain collaboration.

Footwear innovation enabled by warp knitting technology– insights from New Balance

The future of the athletic shoe is increasingly being shaped on warp knitting machines. For KARL MAYER, the footwear industry is one of the most important growth markets – and one of the sectors where innovative textiles can realize their full potential. In his keynote address at the opening of KARL MAYER’s TEXTILE INNOVATION CENTER in Obertshausen in April, Vishnu Prakash Muthusamy, Senior Textile and Materials Engineer at New Balance, explained the opportunities that warp knitting technology opens up for performance, sustainability, and faster development processes, and why textile manufacturers are transitioning from suppliers to development partners.