H&M blamed its decrease gross margin for the tumble in working earnings, which had decreased from 3.9% to 2.2%.
In native currencies web gross sales elevated by 2% with round 3% fewer shops in contrast with the earlier 12 months.
Gross earnings additionally dipped barely from SEK27,655m (£21.3m) to SEK27,169m (£21m) 12 months on 12 months.
The Swedish vogue large stated the lower corresponds with a weaker gross margin of 49.1%, in contrast with 51.5% in the identical interval final 12 months, impacted by “damaging exterior components, elevated markdowns and investments within the buyer providing”.
Cashflow from working actions elevated to SEK4,201m (£32.4m), up from SEK3,967m (£30m) within the first quarter of 2024.
The group’s gross sales are anticipated to extend by 1% 12 months on 12 months in March in native currencies.
H&M stated that “total damaging impact from exterior components, elevated markdowns and investments within the buyer providing is estimated to already be considerably smaller within the second quarter than within the first quarter”.
Daniel Ervér, CEO, stated: “Gross sales elevated by 3% in SEK within the first quarter, with well-received ladies’s collections. Working revenue and profitability have been impacted by briefly difficult growth of the gross margin. Our important priorities are a strengthened product providing, a extra inspiring purchasing expertise and a stronger model. By this we create the circumstances for long-term, worthwhile and sustainable development.”
