From CNBC: 2025-01-30 04:18:53

H&M shares fell more than 5% after missing sales forecasts in Q4, with sales at 62.19 billion SEK, below the 63.48 billion forecast. Full-year sales rose 1% to 234.58 billion SEK, driven by womenswear, sportswear, and online sales. Operating profit for 2024 was 17.3 billion SEK, slightly beating expectations.

CEO Daniel Ervér stated that sales and operating profit increased in Q4 due to strong online sales, women’s fashion collections, and cost control. The company is focused on long-term profitable growth, expecting consumer pressure to alleviate in 2025 despite challenging macroeconomic conditions.

H&M faces tough competition from Zara and Shein, scrapping its 2024 earnings margin target due to higher costs and competition. CEO Ervér aims for at least 10% annual sales growth, an operating margin above 10%, and a 56% reduction in greenhouse gas emissions by 2030. Early progress has been positive, with more potential ahead.



Read more at CNBC:: H&M (HMB) earnings Q4, full-year FY24