H&M Issues First Bonds in Two Years Following Robust Third Quarter

H&M is once again turning to the market for financing. The Swedish fashion retailer is preparing its first bond issue in two years, taking advantage of the good momentum of its share price after the presentation of results for the first nine months of the year.

The group plans to sell $500 million in eight-year senior unsecured bonds. The proceeds of the transaction will be used for general corporate investments.

The company, which has performed positively on the stock market following the last results presentation (confirming that the restructuring plan the group has introduced is paying off), last issued bonds at the end of 2023, when it raised €500 million.

H&M plans to sell $500 million worth of eight-year senior unsecured bonds

In the first nine months of the financial year (December to August), the group posted sales of 169,064 million Swedish kronor ($17.9 billion), down 1.8% on the same period last year. H&M’s profit in the period suffered further, down 9.8% to 7,753 million kronor ($822.9 million).

The Swedish company’s gross profit, meanwhile, fell by 2.8% to 88,737 million kronor ($9.41 billion) and a gross margin of 52.5%, half a percentage point less than the previous year. The drop was also sharper for operating profit, down 5.1% to 12,031 million kronor ($1.27 billion), and an operating margin of 7.1%, down from 7.4% a year ago.

In the third quarter, the group’s performance was somewhat more positive. At the end of the period from June to August, H&M’s sales stood at 57,017 million kronor ($6 billion), 3.4% less than in the same period last year. The giant’s profit, however, recovered to score a rise of almost 40%, which has translated into profits of 3,212 million kronor ($340 million).