Latest news with #H&M
Time of India
12 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
12 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
Yahoo
13 hours ago
- Business
- Yahoo
H&M sees second quarter 2025 sales, operating profit dip
Swedish multinational clothing retail company H&M recorded fall in its operating profit to Skr5.9bn ($624.3m) for the second quarter ended on 31 May. The operating margin falling to 10.4% from 11.9%. This decline is primarily due to a reduced gross margin and unfavourable currency exchange impacts. After-tax profits stood at Skr3.96bn compared to Skr5.06bn previously, resulting in earnings of Skr2.48 per share, a decrease from Skr3.15 per share. Gross profit for the second quarter of 2025 was Skr31.43bn, resulting in a gross margin of 55.4% compared to 56.3% the previous year. The margin suffered mainly due to a more expensive US dollar, high freight costs, and the company's investments in enhancing the customer offering. Despite these challenges, the external factors are expected to turn favourable in the second half of the year. H&M experienced a 1% increase in sales in local currencies, despite operating with 4% fewer stores than the previous year. When excluding store closures, sales saw a 3% rise. However, when converted to Swedish krona (Skr), net sales decreased to Skr56.71bn from Skr59.61bn, influenced by a strong Skr which had a six percentage point negative currency translation effect. H&M CEO Daniel Ervér said: 'Our plan, with its focus on the product offering, the shopping experience and brand, is again confirmed by the progress we see. The positive development in important areas such as online, H&M womens-wear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development.' Selling and administrative expenses were Skr25.49bn, a slight increase in local currencies by 2%. In the first half of the year, net sales were up 1% in local currencies, with Skr112.05bn in net sales. Gross profit was Skr58.59bn, with a gross margin of 52.3%. Operating profit for the half-year was Skr7.12bn, with a margin of 6.4%. June 2025 sales are expected to increase by 3% in local currencies compared to the same month last year, despite a negative calendar effect. Ervér added: 'In uncertain times with cautious consumers we monitor macroeconomic and geopolitical developments closely and continuously adapt both the customer offering and the business to meet our customers' needs in the best way.' H&M is planning to enter the Brazilian market, with both physical and online stores, in the second half of the year. Portfolio brands, particularly COS, have shown growth, and the company remains focused on improving the product offering and shopping experience. Sustainability efforts have been integrated into operations, yielding recognition from an environmental organisation. Ervér added: 'With a clear plan, a strong financial position, good cost control and committed employees, we see good opportunities for long-term, sustainable and profitable growth.' "H&M sees second quarter 2025 sales, operating profit dip" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Fibre2Fashion
14 hours ago
- Business
- Fibre2Fashion
Sweden's H&M Group signs strategic sourcing partnership with Circulose
H&M Group has signed a multi-year agreement to source significant volumes of the innovative material CIRCULOSE for its collections, replacing a substantial share of the virgin viscose used across the group. One of the biggest barriers for the fashion industry when shifting towards a circular model, is the lack of alternatives and technologies at scale to replace virgin and conventional fibres. Agreements like this represent a shift in making this a reality and help fashion brands like us increase the use of textile-to-textile recycled fibres. H&M Group has signed a multi-year deal to source large volumes of Circulose, a recycled material, to replace a significant portion of its virgin viscose use. The agreement strengthens H&M's push towards circular fashion and supports the scale-up of textile-to-textile recycling. Both H&M and Circulose highlight the partnership as a vital step toward broader industry adoption of sustainable materials. 'H&M Group has been a driving force in advancing sustainable and circular solutions in fashion, and a long-time supporter and early adopter of CIRCULOSE – dating back to the Renewcell days. We're proud and grateful to now formalize this new partnership to accelerate CIRCULOSE adoption at scale. Their commitment plays a critical role in helping us reaching the volumes needed to restart our factory,' Jonatan Janmark, CEO of Circulose 'We were pioneers back in 2020 when we first brought fashion made from CIRCULOSE to our customers. Today, we're excited to deepen this partnership. Investing in next-generation materials is essential to achieving our goal: ensuring that 100% of our materials are recycled or sustainably sourced by 2030. Scaling access to these solutions is key to accelerating the shift towards a circular economy for fashion,' Cecilia Strömblad Brännsten, H&M Group's Head of Resource Use & Circularity. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (KD)
Daily Mirror
17 hours ago
- Entertainment
- Daily Mirror
Holly Willoughby's Glastonbury mini dress is the only festival outfit you need
Holly Willoughby was spotted wearing Free People's vintage-inspired mini dress to Glastonbury this year – and if there's one new festival outfit to buy, it's this one From Kate Moss' glitter micro mini dress to Alexa Chung's signature denim shorts, there are plenty of iconic Glastonbury outfits that have become the blueprint for festival dressing. And now we can add Holly Willoughby to that list, as the presenter managed to snag the perfect dress for festival season. Holly was snapped on Friday at Worthy Farm wearing the Lenna Set from Free People, which she paired with some chunky brown boots, a western-inspired belt and a matching brown fedora. Everything from the loose, relaxed fit to the lace details make the set perfect for nailing a boho, vintage style that's always a hit for festivals, and the harder accessories help give it a little bit of edge. Priced at £158, the Lenna Set actually comes with two pieces; a flowing white mini dress and a cropped lace jacket, which were inspired by classic vintage bedroom sets. Both pieces can be easily styled with almost anything else in your wardrobe, giving you multiple outfits in one and saving you space on your festival packing list. The mini dress has a retro shift silhouette, with adjustable straps and a V-neckline, and is made from a crepe satin that's soft and comfortable to wear. The lace panelling around the neckline plays into the vintage look, and its relaxed, slightly A-line fit means it skims over your body for a comfortable and flattering fit. Although you could easily style the dress from the Lenna Set with anything from a denim jacket to an oversized leather jacket for a more edgy look, the matching lace jacket helps keep the vintage boho look. The jacket has short puffed sleeves for a little bit of volume, with a rounded neckline and tie closure at the front, which you can leave open or fasten. Holly opted to wear the two together, and it seems she chose the shade 'summer shower' which is a crisp, clean white. However it also comes in four other shades, including brown, black, dusky pink and a cream shade that makes a softer alternative to the stark white option. For a more affordable version of Holly's dress, we spotted this £35.99 Reclaimed Vintage Mini Lingerie Cami Tea Dress at ASOS, which has a similar silhouette with lace details, although of course doesn't include the lace jacket. We also love H&M's Embroidery-Detail Playsuit, £54.99, which has the same vibe as Holly's look but with the bonus of shorts to prevent chafing in the heat.
