83 032
Fashion Jobs
ADIDAS
Project Manager - Global Team Sports
Permanent · PORTLAND
QVC
Security Shift Leader
Permanent · SUFFOLK
QVC
on Camera Talent Recruitment & Casting Partner
Permanent · WEST CHESTER
BLOOMINGDALE'S
Asset Protection Visual Security Officer, Part Time - Norwalk
Permanent · NORWALK
BELK
Store Fulfillment Associate - Full Time
Permanent · FRANKLIN
BELK
Asset Protection Lead - Full Time
Permanent · AUBURN
BELK
Store Fulfillment Associate - Full Time
Permanent · SAVANNAH
BELK
Store Fulfillment Associate - Part Time - Independence Mall
Permanent · WILMINGTON
BELK
Asset Protection Associate - Full Time
Permanent · ROCKY MOUNT
BELK
Store Fulfillment Associate - Part Time - Coastal Grand
Permanent · MYRTLE BEACH
BELK
Store Fulfillment Associate - Full Time - Bridgestreet
Permanent · HUNTSVILLE
BELK
Store Fulfillment Associate - Full Time
Permanent · TUPELO
BELK
Store Fulfillment Associate - Part Time
Permanent · SAVANNAH
BELK
Asset Protection Manager - Triangle
Permanent · RALEIGH
ALO YOGA
Construction Project Manager
Permanent · LOS ANGELES
SUN VALLEY
Sun Valley Marketing Manager
Permanent · SUN VALLEY
LULULEMON
Community Specialist | (Contract) Market Street The Woodlands
Permanent · THE WOODLANDS
LULULEMON
Community Specialist | Orlando Premium Outlet
Permanent · ORLANDO
LULULEMON
Full-Time Community Specialist | Cumberland Mall
Permanent · ATLANTA
FOSSIL
Dam/Dynamic Media Administrator
Permanent ·
KOHLS
Operations Supervisor - Weekend Days
Permanent · PLAINFIELD
KOHLS
Technical Project Manager
Permanent · MENOMONEE FALLS
By
Reuters API Fashion
Published
Jan 27, 2023
Reading time
2 minutes
Download
Download the article
Print
Text size

H&M's profit tumbles more than expected as costs bite

By
Reuters API Fashion
Published
Jan 27, 2023

Sweden's H&M reported on Friday a much larger than expected drop in September-November profit, hit by weak consumer confidence and soaring costs that it did not fully pass on to price tags.


H&M



Operating profit in the period, the world's second-biggest fashion retailer's fiscal fourth quarter, was 821 million crowns ($79.7 million) against 6.26 billion a year earlier and a mean forecast of 3.67 billion in a Refinitiv poll of analysts.

H&M, which had already reported that sales in the quarter were flat, said on Friday that sales from Dec. 1-Jan. 25 - the start of its fiscal first quarter - were up 5% in local currencies.

"The lower profit in the fourth quarter when compared with the same quarter in the previous year is mainly explained by the negative external factors, loss of the operating profit previously contributed by Russia and the one-time cost of the cost and efficiency programme," it said in a statement.

The hit from quitting Russia, higher raw material, freight and energy costs, currency translation effects and the restructuring charge totalled around 5 billion crowns, Chief Executive Helena Helmersson said.

"Rather than passing on the full cost to our customers, we chose to strengthen our market position further," she said.

H&M in September launched a drive to cut costs by 2 billion crowns annually, with savings from layoffs and other measures expected to start showing from the second half of 2023.

The group flagged in November it would cut around 1,500 jobs and book a roughly 800 million crown restructuring charge in the fourth quarter for the programme.

It announced last year it was exiting Russia due to the country's invasion of Ukraine.

H&M proposed a dividend for 2022 of 6.50 crowns per share, unchanged from the year before, roughly matching expectations.

© Thomson Reuters 2024 All rights reserved.