A general exterior view of the H&M fashion retail store in Oxford Circus on January 09, 2025 in London, England.
John Keeble | Getty Images News | Getty Images
H&M on Thursday reported a slightly better-than-expected uptick in operating profit, although sales missed forecasts in the fourth quarter.
The Swedish fashion giant posted operating profit of 17.3 billion Swedish krona ($1.57 billion) for 2024, versus the 17.2 billion Swedish krona forecast by analysts in an LSEG poll.
Fourth-quarter operating profit came in at 4.6 billion Swedish krona versus the 4.2 billion Swedish krona analysts had predicted.
Sales, meanwhile, were 62.19 billion Swedish krona in the fourth quarter, below the 63.48 billion forecast in a Reuters poll, but up 3% in local currencies. In 2024, sales rose 1% in local currencies to come in at 234.58 billion Swedish krona.
“Sales and operating profit increased in the fourth quarter driven by strong online sales, well-received women’s fashion collections and effective cost control. By focusing on our core business and delivering on our plan, we are on track towards long-term, profitable growth.” CEO Daniel Ervér said in a statement.
H&M has been struggling to compete against Inditex-owned rival Zara, as well as lower-cost retailers such as Chinese-founded fast fashion giant Shein.
In September, the company scrapped its earnings margin target for 2024 as higher costs and increased competition hit third-quarter operating profit.
The results mark the latest test for CEO Ervér, who was appointed to the role in January 2024 to accelerate the group’s turnaround.
This is a breaking news story and will be updated shortly.