H&M Sees Operating Margin Below 10% This Year
Sept 26 (Reuters) -H & M Hennes & Mauritz AB HMb.ST:
BOARD OF DIRECTORS HAS DECIDED TO BUY BACK H&M CLASS B SHARES FOR SEK 1 BILLION, STARTING ON 26 SEPTEMBER 2024 AND CONTINUING UNTIL NO LATER THAN 26 NOVEMBER 2024
AT PRESENT WE ESTIMATE THAT THIS YEAR'S OPERATING MARGIN WILL BE LOWER THAN 10 PERCENT
AROUND 30% OF SALES WERE ONLINE IN FIRST 9 MONTHS OF FY
SALES IN SEPTEMBER 2024 ARE TO INCREASE BY 11 PERCENT IN LOCAL CURRENCIES COMPARED WITH THE SAME MONTH THE PREVIOUS YEAR
IN Q3, IN LOCAL CURRENCIES NET SALES WERE FLAT COMPARED WITH PREVIOUS YEAR
COST OF MARKDOWNS IN RELATION TO SALES IN Q3 2024 INCREASED SOMEWHAT COMPARED WITH YEAR AGO
SIGNIFICANT INCREASE IN MARKETING COSTS IN Q3
EXTERNAL FACTORS HAVE IMPACTED OUR SALES REVENUE AND PURCHASING COSTS MORE THAN WE EXPECTED
COST OF MARKDOWNS IN RELATION TO SALES IN Q4 IS EXPECTED TO INCREASE SOMEWHAT COMPARED WITH CORRESPONDING QUARTER YEAR AGO
FIRST FLAGSHIP STORE FOR H&M BEAUTY IN SWEDEN WAS OPENED IN SEPTEMBER
FOR 2024 PLAN IS TO OPEN AROUND 100 NEW STORES AND CLOSE AROUND 200 STORES, MAKING A NET DECREASE OF AROUND 100 STORES
DURING AUTUMN H&M WILL LAUNCH DIGITAL STORES ON DOUYIN AND PINDUODUO, TWO OF CHINA'S BIGGEST E-COMMERCE PLATFORMS
CONSUMERS' LIVING COSTS HAVE REMAINED HIGH DURING YEAR
FOR GOODS THAT WILL BE SOLD IN Q4, OVERALL EFFECT OF EXTERNAL FACTORS IS EXPECTED TO BE NEGATIVE COMPARED WITH PREVIOUS YEAR
SELLING AND ADMINISTRATIVE EXPENSES FOR Q3 WERE IMPACTED BY LONG-TERM MARKETING INVESTMENTS AND WINDING-DOWN COSTS
IS MONITORING DEVELOPMENTS IN RED SEA AND GLOBAL FREIGHT MARKET AND ACTS TO MINIMISE IMPACT ON CO'S PRODUCT AVAILABILITY, FREIGHT COSTS AND STOCK LEVELS
AROUND 250 STORES GLOBALLY ARE BEING REFURBISHED
Source text for Eikon: ID:nWkr3fsf2Z
Further company coverage: [HMb.ST]
(Gdansk Newsroom)
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