Q3 2024 H & M Hennes & Mauritz AB Earnings Call Transcript
Key Points
- Sales in September are estimated to increase by 11%, showing a strong recovery after a weak start to the quarter.
- The company has made significant long-term investments in the third quarter to strengthen the product offering, shopping experience, and the H&M brand.
- The first autumn collections have been well received by customers, with high engagement in social media and positive feedback.
- Upgraded physical stores in key cities like London, New York, and Paris have been well received, with long queues on opening days.
- The digital store and app have been given an elevated look, which has been positively received and will continue to roll out in more markets next year.
- Increased costs from external factors, particularly currency translation effects, have negatively impacted operating profit.
- The company has decided to discontinue Afound within its portfolio brands, incurring winding-down costs.
- Consumers are still facing lower purchasing power, impacting sales revenues and purchasing costs more negatively than expected.
- The operating margin for the year is estimated to be lower than 10%, below the company's long-term target.
- Elevated material prices and freight costs continue to pose challenges, affecting the company's cost structure.
Good morning, and welcome, everyone, to H&M Group's conference call nine months report for 2024. (Operator Instructions) Please be advised that today's conference call is being recorded. Today, I am pleased to present Joseph Ahlberg, Head of Investor Relations.
I will hand you over to our speakers. Please begin.
Thank you, and good morning, everyone. I am Joseph Ahlberg, and I'm Head of Investor Relations. Today, we will present our nine-month report for 2024. We start with the presentation of the third quarter by our CEO, Daniel Erver. After that, our CFO, Adam Karlsson, together with Daniel and myself, will answer your questions.
After the press conference, there will be individual interviews with the media as usual. Please, Daniel, go ahead.
Thank you, Joseph, and a warm good morning to everyone. To summarize the third quarter, we continue to
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