(Il Sole 24 Ore Radiocor) - Milano, 26 mar - Swedish affordable fashion retailer H&M said that in the first quarter, which ended February 28, net sales fell to 49.607 billion crowns from 55.333 billion a year earlier.

In local currencies, sales fell 1%, with around 4% fewer stores at the end of the quarter compared with the same point in time last year.

Net sales in crowns were negatively affected by a currency translation effect of just over 9 percentage points due to the strengthened Swedish krona.

Group sales in the month of March are expected to increase by 1% in local currencies compared with the same month the previous year.

Gross profit fell to 25.138 billion crowns from 27.169 billion, resulting in a margin of 50.7% against 49.1%. The costs of markdowns decreased somewhat compared with the previous year.

Selling and administrative expenses decreased by 1% in local currencies, and were 9% lower when converted into crowns.

Operating profit increased by 26% to 1.512 billion crowns, a margin of 3.0% against 2.2%. Net profit rose to 704 million crowns from 579 million.

Cash flow from operating activities after changes in working capital amounted to 4.025 billion crowns from 4.201 billion.

Stock-in-trade decreased by 16% to 34.608 billion crowns, and was 5% lower on a currency adjusted basis.

"Through continued good cost control, greater efficiency in our product purchasing and external factors that positively affected purchasing costs, we strengthened both the gross margin and the operating margin compared with the same quarter last year. The results of this can also be seen over the past 12 months, as the operating margin has improved by 1.4 percentage points to 8.4 percent," said CEO Daniel Erver.

"In a still challenging macroeconomic environment marked by increased geopolitical uncertainty, flexibility is more important than ever. With the customer in focus, short decision paths and good cost control, we can adapt to a rapidly changing environment and continue to offer our customers relevant fashion with the best possible value for.

money."

(RADIOCOR) 26-03-26 08:28:51 (0156) 5 NNNN