H&M Boosts Profitability, Sets Goal To Double Sales By 2030

Swedish fashion retailer, H&M, reported a bigger than expected increase in quarterly profits, with recent investments in technology helping the company mitigate ongoing supply chain issues.

“The strong result for the quarter is mainly a result of well-received collections with more full-price sales, lower mark-downs and good cost control,” H&M said in a statement.

The company’s pretax profit between the months of September and November increased by 64% compared to Q4 2020, reaching $640 million, which was higher than the $250.7 million profit analysts had expected. When compared with Q4 of 2019, profits were up 43%.

“We ended the year strongly, with sales back at the same level as before the pandemic and with profitability better than it has been for several years,” CEO Helena Helmersson said. “Now that we are back to a more normalized situation with a strong financial position and good profitability, we can fully focus on growth again.”

Following the growth in revenue and profitability, the company has announced plans to make a $1.1 billion investment in technology this year with the goal of doubling sales by 2030. At the same time, it has also set a goal of reducing its carbon footprint in half, and reaching an operating margin above 10% by 2024, Reuters reported. Last year, the company maintained an operating margin of 7.7%.

Following the announcement, the company’s stock was up by 5% in early trading.

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Originally published at https://retailbum.com on February 1, 2022.