Q4 2024 H & M Hennes & Mauritz AB Earnings Call Transcript
Key Points
- Hennes & Mauritz AB (HMRZF) reported a 3% increase in sales in local currencies for Q4 2024, driven by strong performance in women's wear and sportswear collections.
- The company nearly doubled its earnings per share in Q4 2024 due to solid cost control, despite significant investments in marketing and costs related to winding down Monki.
- Online sales accounted for 30% of total sales during the financial year, showing strong performance and contributing positively to overall sales growth.
- The company has made significant progress in elevating its product offering, shopping experience, and brand building, particularly in women's wear, which has been well-received by customers.
- Hennes & Mauritz AB (HMRZF) plans to continue its focus on organic growth, with strategic investments in store refurbishments, supply chain flexibility, and marketing to strengthen its brand and customer relationships.
- The company faced challenges with extended transportation lead times, impacting stock levels and requiring adjustments to purchasing plans.
- Despite the positive sales growth, the overall sales increase for the full year was only 1% in local currencies, indicating room for improvement.
- The winding down of Monki and Afound had a negative impact on the portfolio brands' sales, highlighting the challenges in managing brand transitions.
- External factors such as increased transportation costs and currency fluctuations negatively affected the gross margin, with expectations of continued pressure in the first quarter of 2025.
- The company anticipates a slight increase in markdowns in Q1 2025 due to the timing shift of Black Friday sales, which could impact profitability.
Good morning, everyone and a warm welcome. Also to those of you who participate online. Today, we will present the full-year results for 2024 for the H&M Group.
I am Joseph Ahlberg and I'm Head of Investor Relations. Before I hand over to our CEO, Daniel Erver and our CFO, Adam Karlsson, I'd like to share this morning's setup. We are webcasting this presentation including the Q&A. Afterwards, there will be individual interviews with media as usual. We start with a short summary of our results and the past year from Daniel, followed by a financial review from Adam. And lastly, a run through of key highlights of 2024 including a brief outlook from Daniel.
We round off this event with a Q&A session where all of us are available to answer your questions. During the Q&A, we will have microphones at hand ready to give to those of you who wants to ask questions here in the room and also to then hand over to the questions from online.
And for those of you here in the room, please remember to raise
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