Swedish clothing giant Hennes & Mauritz AB (OTC:HNNMY) (OTC:HMRZF) group reported a 6% year-on-year increase in second-quarter FY23 sales to SEK 57.6 billion.

High raw materials and freight costs and a strong U.S. dollar had a negative impact on the result compared with the previous year.

Operating profit for the quarter totaled SEK 4.741 billion with an operating margin of 8.2%.

Sales for the H&M group during the period June 1 -27, 2023, increased by 10% in local currencies compared with the same period last year.

The 2023 annual general meeting authorized the board to start a share buyback program for a maximum amount of SEK 3 billion in the period up to the 2024 annual general meeting.

"We increased sales in many markets despite reduced purchasing power and unfavorable weather conditions compared with last year," said CEO Helena Helmersson.

"The conditions for increased growth as well as profitability continue to develop in a favorable direction."

Price Action: HNNMY shares closed lower by 1.38% at $2.85 on Wednesday.