stockholmswedish fashion retailer hennes  mauritz reported results for the second quarter of fiscal 2023 on thursday heres what we watched sales hm had already released secondquarter sales figures reporting a 6 rise on year to 5762 billion kronor 534 billion while net sales in local currencies were flattish in the three months to may 31 net profit net profit was sek33 billion for the quarter compared with sek368 billion a year earlier analysts polled by factset had expected sek289 billion margins the company reported a gross margin of 527 compared with 548 while the operating margin slipped to 82 from 92 high raw material and freight costs combined with a strong us dollar had a very negative impact on most purchases made for the second quarter when compared with the previous year but the cost of markdowns in relation to sales was flat on year hm said external factors affecting purchases of goods have gradually improved and pivoted from being negative to positive compared with the same purchasing period the previous year it said for the goods that will be sold in the third quarter the effect of external factors is expected to be neutral before becoming positive for the rest of the year it added current trading sales between june 127 rose 10 in local currencies on year while the cost of markdowns in relation to sales in the third quarter is estimated to increase slightly compared with the corresponding quarter the previous year the summer collections have been well received and the third quarter has got off to a good start the conditions for increased growth as well as profitability continue to develop in a favorable direction said chief executive helena helmersson targets hm still targets sek2 billion in annual cost savings from 2h and a 10 operating margin in 2024 it said that work on the cost and efficiency program is progressing at high intensity the actions already started to have an effect toward the end of the second quarter and the effects are expected to materialize further in the second half of 2023 it added