H&M is bouncing back from the pandemic: in 2021 the fashion retailer made 1,36 billion euros in pre-tax profits – a sixfold increase compared to the year before. Their online branch remains strong, though, growing 30 percent in the past year.

H&M recently released their annual numbers. The company seems to be bouncing back from pandemic year 2020 with increasing profits. The Swedish fashion group has many well-known brands under its belt, including &Other Stories, Monki, COS and Afound.

19 billion euros net revenue

In the last quarter of 2021, revenue without exchange rates grew 8 percent. Over the whole year, net turnover totaled at 19 billion euros – a 6 percent increase compared to the previous year.

Net turnover totaled at 19 billion euros.

Profits especially soared: over 2021 the fashion giant made 1,36 billion euros in pre-tax profits. That is six times as much as in 2020. In Q4, profits before taxes grew a whopping 60 percent.

Over 200 stores closed

The annual numbers are definitely impacted by pandemic restrictions: in 2020 net profits were at 110 million euros compared to 1,1 billion euros now. Covid-19 still had its grasp in 2021 though, with over 200 physical stores closing.

Compared to 2019, profits are up 40% in Q4.

But even compared to pre-pandemic year 2019, profits are up 40 percent in the last quarter. “We ended the year strongly, with sales back at the same level as before the pandemic and with profitability better than it has been for several years”, CEO Helena Helmersson says.

Online branch remains strong

Now that stores are opening up again, the online branch still remains strong. In Q4, online sales grew 10 percent. Year on year there even was a 30 percent increase. Six of the 19 billion euros in H&M Group’s revenue is now carried by the online branch.

Six of the 19 billion euro revenue is carried by the online branch.

Their separate brands are also online-heavy: &Other Stories and Monki are available in more countries digitally compared to physical stores. According to H&M, the company will continue to integrate online and physical channels, for example with click-and-collect and parcel lockers.