STOCKHOLM, June 29, 2022 (BSS/AFP) - Swedish fashion retailer H&M posted
stronger-than-expected sales and profits in the second quarter on Wednesday
as shoppers splurged in stores and online.
The company, however, warned that "many challenges remain", including soaring
global inflation, supply chain bottlenecks and Russia's invasion of Ukraine.
H&M's net profit soared by 33 percent to 3.7 billion Swedish kronor ($364
million) between March and May compared to the same period last year, while
sales surged 17 percent to 54.5 billion Swedish kronor despite stopping sales
in Russia, Ukraine and Belarus.
"Well-received collections have led to strong development, with a further
increase in full-price sales and decrease in markdowns," H&M CEO Helena
Helmersson said in a statement.
Shoppers returned to stores as Covid restrictions have been lifted in most
parts of the world.
"Sales in physical stores increased substantially while online continues to
do well. This once again shows the value of having both physical and digital
channels which strengthen and complement each other," she said.
Helmersson said disruption and delays in the supply chain are "gradually"
being eased, but there is "substantial inflation".
"The situation associated with the war in Ukraine and its consequences for
our business are continually being evaluated," the CEO said.
"We are actively looking at various options to find solutions that give
consideration to customers and colleagues as well as the impact on the
business as a whole."