For the second consecutive quarter the result is above pre-Covid levels, with an increase of more than SEK 500 million
Useful beyond expectations for H&M in the fourth quarter of the year. The second clothing chain “fast fashion” (after Zara) closed the last ones three months of 2021 with an increase of 64% of pre-tax profits a 640 million dollars. For the second consecutive quarter the result is therefore higher than pre-Covid levelswith an increase of over 500 million Swedish kronor (about 50 million euros) compared to the consensus of the analysts.
The sales in December and January grew by 20% in value compared to the same period last year and now the goal set openly by the company’s management is double revenues by 2029 compared to the 199 billion crowns of 2021, moreover halving carbon dioxide emissions.
H&M aims for a operating margin of 10% by 2024.
This is, in all likelihood, a conservative objective, also because the fourth quarter closed with a Mol of 11%. “Now that we’re back to a more normalized situationwith a strong financial position and good profitability we can return to focus on growth “said CEO Helena Helmersson.
A month ago the holding Index, owned by Ortega family and who owns the brands Zara, Bershka, Stradivarius, Pull & Bear and massimo Dutti it had recorded a record trend in the third quarter. As of 31 October, in fact, it closed with a net profit of 1.23 billion, up 42% compared to the same period of 2020. In the first nine months of 2021 Zara and the other brands had achieved a performance of 19.3 billion500 million below 2019 levels.
So you can draw a first, incomplete balance sheet: the fast fashion has leftbut right now H&M – which in Italy has a slightly lower average cost than in Zara – seems to register better performance. A clear sign that Covid’s legacy in the fashion world is a further polarization between the lower-priced segments and luxury. Precisely in this second sector we see how the strongest pulled their muscles out, with Louis Vuitton and Hermès which recorded an increase in sales – according to Comgest – of over 35% compared to pre-crisis levels.
The proof lies in the fact that according to a study presented during Pitti Uomo by Owc and the Edison Foundation, the the fashion & luxury sector records a turnover higher than 1% compared to 2019while the world of fashion as a whole is still down by 15 percentage points compared to the last pre-Covid period. to reach the levels of 2019 it will be necessary to wait until 2023 (at least for Italy), the brands of fast fashion and luxury have started running again. In between, some more suffering.
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