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H&M recovers its dividend 18 months after suspending it as Swedish fashion retailer continues its recovery from the Covid-19 pandemic.
The second largest clothing retailer in the world posted a pre-tax profit of 6.1 billion ($ 690 million) in the third quarter, almost three times more than a year earlier and a fifth before the same quarter in 2019 before the pandemic began. has. According to Reuters, it was also better than the average forecast of analysts of 5.1 billion SKr.
But the supplier of cheap chic has not yet reached its sales levels before the pandemic, with a turnover of 9 percent to 566 billion year on year, but still below the 63 billion SKR from the third quarter of 2019.
The board of H&M proposes a dividend of R6,5 per share to be paid in November. It suspended its payout proposal for 2020 in March because the pandemic hit most of its markets, closing up to four-fifths of its stores worldwide.
“The increase in profits of the H&M group shows that the strong recovery continues – despite the fact that sales are partly affected by constraints and delays related to the pandemic,” said Helena Helmersson, CEO.
Karl-Johan Persson, chairman and grandson of the founder of H&M, said: ‘The board is now of the opinion that the improved profitability, strong financial position and the stabilized market conditions of the H&M group, combined with our ability to impact the pandemic on our business makes a dividend possible. ”