For the first quarter, H&M admittedly turned a profit, SEK 282 million before tax, after making a loss of SEK 1.3 billion during the previous pandemic-related year.
However, it was still significantly worse than the market's expectations of a profit before tax of around SEK 1 billion, according to Bloomberg's compilation.
"In addition to the general consequences of the pandemic, such as disruptions and delays in the supply chain, several of our important markets were hit by a new wave of pandemics during the first quarter," the company writes in the report.
Restrictions affected
At the same time as stores were forced to close, those who could stay open were also affected by extensive restrictions, the company writes, and also highlights various investments in the tech and supply chain as negatively affecting earnings.
The company writes that for the period 1–28 March, ie after the reporting period, sales increased by six percent in local currencies compared with the corresponding period last year.
Concerns about the war
Excluding Russia, Belarus and Ukraine, the increase was 11 percent.
Following the outbreak of the war, H&M, like many other Western companies, has suspended its operations in Russia.
"We are deeply concerned about the war in Ukraine and we are following developments closely.
We join behind everyone around the world who is appealing for peace.
Once again, we must be flexible and act quickly based on the changed conditions ", writes CEO Helena Helmersson in the report.
The situation in China, where the company, like many other companies, has been subjected to an extensive boycott, is not addressed in the report.