H&M: dividend payments to be resumed

(CercleFinance.com) - H&M announced on Thursday that it will resume paying dividends to its shareholders, which it had to interrupt because of the pandemic.


The Swedish clothing group, whose latest quarterly results far exceeded expectations, said it would pay a dividend of 6.5 Swedish kronor per share in November, equivalent to a total payout of about 10.75 billion kronor (1.05 billion euros).

H&M this morning reported a net profit of 6.1 billion Swedish kronor (about 600 million euros) for its Q3 to end-August, compared with a loss of 2.4 billion Swedish kronor (about 240 million euros) in the same period last year.

This outperformed RBC's forecast of a profit of around 5.3 billion Swedish kronor.

Despite these seemingly good figures, H&M shares were pretty flat on Thursday morning on the Stockholm Stock Exchange, with UBS analysts saying that investors could be disappointed by little improvement in sales trends in September.

The fashion group said it was unable to meet demand due to disruptions and delays in its supply chain.



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