Latest news with #DanielErver
Time of India
2 hours ago
- Business
- Time of India
H&M profit beats expectations as brand reboot starts to bear fruit
Swedish fashion retailer H&M reported slightly stronger second-quarter profit on Thursday, an encouraging sign as CEO Daniel Erver tries to attract more shoppers with trendier clothes. H&M shares were up 4% by 1000 GMT as investors focused on the profit rather than second-quarter sales, which fell slightly more than predicted. Erver has said his focus is on profitability rather than solely sales growth. The world's second-largest listed fashion retailer also said it expected sales in June, measured in local currencies, to rise 3%, an improvement after a 6% fall in the same period a year ago. "Our collections are more current, they are more on trend, more fashionable, and the customer reception has been strong throughout this quarter," Erver said in a press conference. Erver said gingham and check patterned dresses, blouses and skirts have been especially popular this season, with the trend continuing into the autumn. Accessories sales have picked up, with social media also driving a craze for mini-accessories on bags, sneakers, and cellphones, he said. In the U.S., where H&M has around 500 stores, Erver said consumer sentiment has dropped significantly due to the "turbulent" tariffs situation since President Donald Trump hiked duties on imports, and competitors have started raising prices as a result. H&M, which sources its products primarily from China and Bangladesh, is focused on keeping prices competitive, Erver said, as consumers are particularly price-sensitive given uncertainty around the economy in the U.S. and globally. H&M's sales were 56.7 billion Swedish crowns ($5.99 billion) in the March to May quarter, down from 59.6 billion a year ago. Analysts polled by LSEG had forecast revenue of 57.0 billion crowns. Zara owner Inditex earlier this month also reported disappointing sales, in a sign consumers are pulling back from spending on clothes as U.S. tariffs create risks for global economic growth. H&M's second-quarter operating profit was 5.91 billion crowns, beating analysts' forecast of 5.88 billion, and the operating profit margin was 10.4%, down from 11.9% a year ago but still better than analysts had feared. "The slightly better than expected margin delivery sends a positive signal to the market," said Alphavalue analyst Jie Zhang. "The brand upgrading strategy has started to pay off." H&M said its higher-priced brand COS had done especially well and shoppers are opting for more medium- and high-priced items across the board, helping to boost profitability. But Erver flagged more discounting in the June to August quarter as he said summer markdowns across the market were highly competitive. Even as it reduces store numbers globally, H&M is also searching for growth in new markets with a growing middle class, with plans to open its first stores in Brazil in the second half, as well as in El Salvador and Venezuela, and to launch in Paraguay next year.
Sinar Daily
2 hours ago
- Business
- Sinar Daily
H&M sales fall in second quarter on stronger currency
H&M said its net profit fell to 3.96 billion kronor ($419 million) for the period of March to May of 2025, down from 5.06 billion a year earlier. 28 Jun 2025 04:00pm SWEDISH fashion giant H&M on Thursday reported a drop in sales and profit in the second quarter, as currency effects weighed on the company's earnings. H&M said its net profit fell to 3.96 billion kronor ($419 million) for the period of March to May of 2025, down from 5.06 billion a year earlier. "The quarter's result was negatively affected by higher purchasing prices as a result of a more expensive US dollar and higher freight costs, but also by the fact that we have continued to invest in the customer offering," H&M chief executive Daniel Erver said in a statement. Erver noted that "negative external factors that increased the costs of purchasing for the first half of the year are turning positive for the second half of the year". Net sales for the company fell nearly five percent to 56.7 billion kronor, compared to the second quarter of 2024. But the company noted that net sales rose by one percent in local currencies "with four percent fewer stores at the end of the quarter compared with the same point in time the previous year." In its quarterly earnings report it said net sales were hit by "a currency translation effect of around six percentage points due to the strengthened Swedish krona." H&M also said its sales result in the second quarter should "be seen in light of the fact that the second quarter of 2024 was a strong quarter". - AFP More Like This
Business Insider
a day ago
- Business
- Business Insider
H&M Stock (0HBP) Jumps on Possible Tariff-Fueled Price Increases
H&M (GB:0HBP) stock rallied on Thursday after the Swedish fashion company said it's considering price increases. The company didn't directly attribute this to tariffs, but it suggested as much. CEO Daniel Erver said during its earnings call that, 'We are starting to see some competitors increasing prices and this is something we are of course looking into to ensure we remain competitive.' Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Adding to that were statements included in its latest earnings report, including claims that results were negatively affected by 'higher purchasing prices as a result of a more expensive US dollar and higher freight costs.' It also stated it will continue to monitor macroeconomic and geopolitical developments during these uncertain times. While H&M included these comments in its earnings report, it didn't provide a detailed breakdown of how tariffs were affecting its business. Even so, investors will keep in mind that the U.S. is the company's second-largest market. With much of the company's supply line based in China, tariffs will likely have a strong effect on its operations. What's Next for H&M? There are two major catalysts that H&M investors want to watch out for. The first is the July 9 deadline for tariff negotiations. This will likely affect how President Donald Trump applies tariffs to other countries. The results of these negotiations could have a large impact on the stock market, including 0HBP shares. The next big catalyst is the end of a tariff pause with China. This 90-day hold will end on Aug. 12, 2025. Depending on the results of these negotiations, this could be another major inflection point for stocks. Considering H&M's reliance on Chinese suppliers, this could have a major impact on its operations. H&M stock was up 1.35% as of Thursday morning but is still down 9.95% year-to-date. The shares have also fallen 24.17% over the past 12 months. Is H&M Stock a Buy, Sell, or Hold? Turning to Wall Street, the analysts' consensus rating for H&M is Moderate Sell, based on one Buy, five Hold, and four Sell ratings over the past three months. With that comes an average 0HBP stock price target of $134.89, representing a potential 3.2% upside for the shares.
The Sun
2 days ago
- Business
- The Sun
Fashion giant H&M predicts summer sales rebound after profits fall
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. 1 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. 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.
Scottish Sun
2 days ago
- Business
- Scottish Sun
Fashion giant H&M predicts summer sales rebound after profits fall
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) 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. 1 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.
