Thursday's session on European markets brings dynamic rallies for the shares of global company H&M (HMB.SE), which published surprising financial results for the first quarter of 2023 (December 2022-February 2023). The company's first attempts to reduce operating costs have started to have the desired effect, even in a situation of reduced consumer activity.
H&M's results for Q1 2023
- Net profit 540 million kroner (estimated loss 1.12 billion kroner)
- Operating profit of 725 million kroner (estimated loss of 1.03 billion kroner). A year earlier it was a profit of 458 million kroner.
- Gross profit 25.89 billion kroner (expected 24.79 billion kroner)
- Sales increased by 12% year-on-year.
- Operating margin 1.3% against last year's reading of 0.9%.
- Despite the expense reduction programme being implemented, core costs increased by 10%. However, the company expects to save close to SEK 2 billion this year as a result of the implemented programme.
Details of the company's report and other important announcements. H&M's board of directors is seeking shareholder approval for a share buyback of up to SEK 3 billion, but said that a final decision is still to be awaited to see how the company develops further. Source: H&M
H&M (HMB.SE) shares are gaining dynamically and are breaking out near the June 2022 highs. At this point, the stock is up more than 14% on a daily basis. Source: xStation 5
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