Profit surged in the first quarter of 2024 compared to the same period of the previous year for Swedish clothing retailer Hennes & Mauritz AB or H&M Group, despite weak net sales, the company reported on Wednesday.
Regarding the current trading, H&M said its sales in the period March 1 to 25 increased by 2% in local currencies.
Separately, H&M said its nomination committee proposes that Helena Saxon is elected as a new member of the board of directors. It is proposed that Karl-Johan Persson is re-elected as chair of the board.
The annual general meeting will be held on May 3 to resolve, among other things, on the board's proposed dividend of 6.50 Swedish kronor (62 US cents) per share, to be paid in two instalments.
In its first quarter, result after tax increased to 1.20 billion kronor from last year's 540 million kronor. Earnings per share were 0.75 krona, up from 0.33 krona a year ago.
Operating profit amounted to 2.08 billion kronor, significantly higher than last year's 725 million kronor. Operating margin was 3.9%, up from 1.3% a year ago.
Gross profit increased 7% from last year to 27.67 billion kronor, and gross margin improved to 51.5% from prior year's 47.2%.
Meanwhile, H&M group's net sales fell to 53.7 billion kronor from prior year's 54.87 billion kronor.
In Stockholm, H&M shares were trading at 175.10 kronor, up 13.48%.
