Fashion giant H&M predicts summer sales rebound after profits fall
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H&M yesterday posted a fall in profits which was smaller than feared — and it now predicts a sales rebound despite heavy discounting in the fashion industry.
Operating profits at the Swedish giant fell to £455million for the three months to the end of May.
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H&M posted a fall in profits that was smaller than feared
Analysts had expected a bigger dip, and the news helped H&M's shares jump seven per cent in Stockholm yesterday morning.
It came despite a slightly worse-than-forecast performance for sales, which edged just one per cent higher in the quarter.
H&M, the world's second-largest listed retailer, shut 153 stores in the year to May 31, leaving it with 4,166 globally. With the closures stripped out, it said sales rose by three per cent.
The clothes retailer now expects a three per cent sales jump this month, an improvement from the six per cent drop seen this time last year.
H&M said earnings were impacted by the higher costs of clothing due to a stronger dollar, as well as giving 'customers even more value for money'.
It is keeping a keen eye on changes and restrictions in global trade. Boss Daniel Erver said: 'In uncertain times, we monitor developments closely.
'Our plan, with its focus on the product offering, the shopping experience and the H&M brand, is confirmed by the progress we see in key parts of the business.'
SHELL DENIES BID FOR BP
SHELL has shut down speculation about a possible takeover of BP, confirming it has no plans to make an offer for its rival.
Reports earlier this week suggested the two energy giants were in early talks over a merger, with BP reportedly considering the approach.
But Shell told investors yesterday that it 'has not been actively considering making an offer for BP'.
It also denied making an approach to BP and insisted no talks have taken place with regards to a possible offer.
The statement added that Shell had 'no intention' of making an offer.
FUEL'S ERRAND
THE UK's largest bioethanol plant has warned it will shut down by mid-September without Government support for the industry.
Hull-based Vivergo Fuels, owned by Associated British Foods, says the UK-US trade deal removed tariffs on US ethanol imports, making it impossible to compete with subsidised US products.
The Government said it is in talks with Vivergo to find a solution.
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The key to poker is understanding the value of what is in your hand. In the winter transfer window of 2023, when Chelsea offered £55million for Moisés Caicedo, Brighton & Hove Albion said 'no'. They said the same again when Arsenal followed with a £60million bid, and still no when they raised it to £70million. From the outside, there was consternation. Danny Murphy told talkSPORT Brighton's stance was 'ridiculous' and 'for £70million I would have driven Caicedo there'. But when the summer window opened and Chelsea returned with offers of £60million, then £70million and then £80million, Brighton's answers remained emphatic: no, no, and no again. It was another no when Manchester United entered the running and no when Chelsea suddenly raised the ante and went all the way to the £100million mark. At last, when Liverpool mooted £111million, Brighton accepted a bid — and yet still there were cards to play. 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On the other hand the Kilman deal looks even better from Wolves' point of view — 12 months on he is now worth £19.2million less than West Ham paid for him. City selling Alvarez to Atletico Madrid for £64million seems a bad deal by both measures. The price was £13million below the Argentina forward's market value at the time and now it is £21.4million below his market value — albeit add-ons included in the deal may allow City to recoup up to £17million. United fare dreadfully in the analysis. They have made 14 significant sales in the past three seasons, 11 of whom now valued higher than the fees received for them, with Scott McTominay, Anthony Elanga and Álvaro Carreras worth a combined £63million more. To value players, Brighton use the unique information provided by Jamestown Analytics, an offshoot of Bloom's betting data company, Starlizard. They stick to those valuations and ignore distractions: back in January 2023, Caicedo agitated to go, even posting a plea to leave on Instagram. Brighton did not go to war with their asset but calmly asked him to stay away from training until the transfer window closed and then extended his contract, to further increase his value. Only selling when a replacement has been signed or lined up is also the Brighton way. Marc Cucurella was replaced by Pervis Estupiñán, Robert Sánchez by Bart Verbruggen and Leandro Trossard by João Pedro. Caicedo himself was the replacement for Yves Bissouma and on the same day he signed for Chelsea, Brighton entered talks with Lille for his replacement, Carlos Baleba. Now Baleba, 21, is projected to be a future £100million sale but a club who made gentle inquiries came away with the impression that Brighton are unlikely to let him go until next season, because his replacement has not been identified yet. Liverpool's headaches are eased by having Michael Edwards and Richard Hughes to oversee trading. Hughes sold well at Bournemouth and squeezing €10million from Real Madrid for the last month of Alexander-Arnold's contract was remarkable even by Edwards's standards. During the building phase of the modern Liverpool, as sporting director Edwards raised £396million from sales from 2014-17 — enabling the recruitment of Virgil van Dijk, Mo Salah, Sadio Mané, Roberto Firmino, Joël Matip, Gini Wijnaldum, Adam Lallana, Alex Oxlade-Chamberlain, Joe Gomez and Robertson on a pretty much obscene £58million net spend. There were many coups, like persuading Bournemouth to spend a club record £15million on Jordon Ibe, and Leicester £12.5million on Danny Ward, but none beat getting Barcelona to not just lavish £142million on Philippe Coutinho but agree a clause meaning they would pay a €100million (then £89million) premium in addition to any transfer fee if they signed a Liverpool player over the next 2½ seasons. It would prove the deterrent to Barça targeting Salah and Van Dijk. Selling, like buying in the transfer market, depends on relationships with clubs, agents and players; on planning ahead and having the right handle on valuations. 'It's not rocket science,' said the senior recruiter. 'I just think it's a cultural psyche because nearly everyone in England sees winning as points but a handful of clubs like Brighton rightly see winning as selling.' 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