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H&M Reinstates Dividend Payout After Posting Forecast-Beating 3Q Profit

By Dominic Chopping

 

STOCKHOLM--Sweden's Hennes & Mauritz AB on Thursday proposed reinstating a dividend payment after posting a forecast-beating rise in third-quarter net profit amid well-received autumn collections with more full-price sales, lower markdowns and cost control.

"The H&M group's increase in profit shows that the strong recovery is continuing, despite sales being partly affected by restrictions and delays associated with the pandemic," said Chief Executive Helena Helmersson.

"As restrictions have been eased in many markets, store sales have started to pick up again, all while online sales have continued to grow," she added.

The company posted a net profit of 4.69 billion Swedish kronor ($535 million) for the fiscal quarter ended Aug. 31, compared with SEK1.82 billion a year earlier. Analysts polled by FactSet had expected a profit of SEK4.0 billion.

Sales rose 9.3% to SEK55.59 billion, as previously announced, while sales in September were slightly higher than the corresponding month last year in local currencies, even though demand was not able to be fully met because of disruption and delays in product flow, it said.

Online sales jumped 22% in local currencies and currently around 50 stores are temporarily closed, it added.

The fashion retailer proposed a dividend of SEK6.50 a share, to be paid in November this year.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

September 30, 2021 02:55 ET (06:55 GMT)

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