H&M's September-November profit rises more than expected as sales recover

Sweden's H&M reported on Friday a bigger profit rise than expected for the September-November period on the back of well-received collections and cost control. Pretax profit at the world's second-biggest fashion retailer grew to 6.00 billion crowns ($640.1 million) from a year-earlier 3.67 billion in the period, its fiscal fourth quarter.

Sweden's H&M reported on Friday a bigger profit rise than expected for the September-November period on the back of well-received collections and cost control.

Pretax profit at the world's second-biggest fashion retailer grew to 6.00 billion crowns ($640.1 million) from a year-earlier 3.67 billion in the period, its fiscal fourth quarter. Analysts polled by Refinitiv had on average forecast a 5.43 billion crown profit. "The strong result for the quarter is mainly a result of well-received collections with more full-price sales, lower mark-downs, and good cost control," the group said in a statement.

H&M proposed an ordinary dividend of 6.50 crowns per share to be paid in two installments, and authorization for a 3 billion share buy-back program. H&M said it aimed to double sales by 2030 while at the same time halve its carbon footprint, and that it aimed for profitability to exceed 10% over time.

"To achieve the ambitious growth and climate goals, investments are being increased. For 2022 capex is expected to amount to around 10 billion crowns," it said. ($1 = 9.3736 Swedish crowns)