Latest news with #H&MGroup
Yahoo
4 hours ago
- Business
- Yahoo
H&M Group inks multi-year Circulose partnership
This story was originally published on Fashion Dive. To receive daily news and insights, subscribe to our free daily Fashion Dive newsletter. H&M Group has signed a deal with recycled textile manufacturer Circulose, according to a Friday press release. Through the multi-year partnership, the Sweden-based fast fashion retailer said it will source 'significant volumes' of Circulose's fiber for its collections. The material, which Circulose makes from recycled cotton waste, will replace 'a substantial share of the virgin viscose used across the group,' per the release. The announcement follows similar news from fast fashion retailer Mango, which said earlier in June that it also planned to incorporate Circulose's fibers into its supply chain. The decision to incorporate more of Circulose's recycled fiber materials into its supply chain is a continuation of a partnership that began in 2020, said Cecilia Strömblad Brännsten, head of resource use and circularity at H&M Group. 'Investing in next-generation materials is essential to achieving our goal: ensuring that 100% of our materials are recycled or sustainably sourced by 2030,' Strömblad Brännsten said in the release. 'Scaling access to these solutions is key to accelerating the shift towards a circular economy for fashion.' H&M Group recently received relatively high marks for its sustainability efforts from nonprofit environmental group which awarded the retailer an overall score of 'B+' for its progress toward decarbonizing its supply chain. In addition, the 2025 Corporate Climate Responsibility Monitor reported last month that H&M Group's greenhouse gas emission reduction goals for 2030 are aligned with the Paris Agreement. Circulose, formerly known as Renewcell, appointed former H&M Group CEO Helena Helmersson as chairman of its board in November 2024, at the same time the company named former McKinsey & Company partner Jonatan Janmark as its CEO. The executive changes were part of a larger rebrand strategy following the company's acquisition last year by Sweden-based investment firm Altor, which bought then-Renewcell out of bankruptcy in June 2024. '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,' said Janmark in last week's release. '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.' Circulose's pulp material is made entirely from textile waste rather than virgin resources, per the release. The resulting product can be transformed into man-made cellulosic fibers such as viscose and lyocell, and those fibers can be spun into yarns, or woven or knitted into fabrics. Last month, Circulose announced the launch of Circulose Forward, a digital platform created in partnership with nonprofit group Canopy, that is designed to help brands integrate Circulose into their supply chains. Recommended Reading Recycled textile pulp facility opens in China Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Value Chain
3 days ago
- Business
- Fashion Value Chain
H&M Group Partners with Circulose to Scale Circular Fashion
In a significant stride toward sustainable innovation, H&M Group has joined Circulose as a Scaling Partner in a new multi-year collaboration, reinforcing its leadership in adopting circular materials across the global fashion landscape. Building on its pioneering use of CIRCULOSE® since 2020, H&M Group now aims to convert a considerable portion of its man-made cellulosic fibers (MMCF) to CIRCULOSE®—a revolutionary material derived entirely from discarded textiles. The partnership supports both parties' long-term goals of reducing dependency on virgin fibers while maintaining high standards of fabric quality and functionality. CIRCULOSE®, developed from textile waste, enables brands to embed circularity into their supply chains without compromising performance. The material, previously commercialized under Renewcell, is now positioned for accelerated scaling through strategic brand alliances like this. 'H&M Group has been instrumental in driving early adoption of CIRCULOSE®, even during its Renewcell phase. Formalizing this Scaling Partnership gives us the commercial backing we need to scale production and restart our operations. Their involvement is vital to our volume goals,' said Jonatan Janmark, CEO of Circulose. 'We led the way in 2020 by bringing CIRCULOSE® to customers and are proud to take this next step. Next-gen materials are core to our 2030 target of using only recycled or sustainably sourced materials. To move the needle on circular fashion, scalable solutions like CIRCULOSE® must become more accessible,' added Cecilia Strömblad Brännsten, Head of Resource Use & Circularity, H&M Group. This new phase aligns with Circulose's sharpened commercial strategy, centered on deeper brand integration, hands-on implementation support, and a licensing-based pricing model co-developed with Fashion for Good and Canopy—aimed at reducing adoption barriers and driving next-gen material use at industrial scale.
Fibre2Fashion
5 days 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)
Yahoo
5 days ago
- Business
- Yahoo
Circulose, H&M boost efforts to expand circular materials use in fashion
Since 2020, H&M has pioneered the integration of Circulose into their product lines. The new agreement cements their role as one of Circulose's inaugural Scaling Partners, with H&M aiming to replace a significant portion of its man-made cellulosic fibres (MMCF) with Circulose-derived fibres. Circulose, developed from repurposed textiles, represents an advanced material that enables fashion brands to progress towards a circular fashion model by decreasing dependence on new, virgin fibres without compromising on quality and functionality. Circulose CEO Jonatan Janmark said: '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 formalise 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.' The collaboration is in line with Circulose's commercial strategy, focusing on brand cooperation, offering dedicated support for implementation and introducing a novel licensing-based pricing structure. This pricing model was devised in conjunction with Fashion for Good and Canopy to streamline the expansion of next-generation materials. H&M Group's Resource Use & Circularity head Cecilia Strömblad Brännsten said: '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.' The announcement follows Circulose's decision to appoint Helena Helmersson, former CEO of H&M Group known for her dedication to sustainability initiatives, as chairman of its board. "Circulose, H&M boost efforts to expand circular materials use in fashion" was originally created and published by Just Style, 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. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
5 days ago
- Business
- Yahoo
H&M Group Impacted by Investments, External Factors in Q2
Updated 2:03 p.m. ET on June 26 PARIS — With a smaller store footprint, increased marketing investment and other initiatives to boosts its core womenswear category, H&M Group said it was beginning to see early signs of success in its turnaround strategy as it released second-quarter results Thursday morning. More from WWD 5 Standout Fashion Trends for Effortlessly Chic Summer Style to Shop at Nordstrom Reformation's Collaboration With Creator Sara Walker Delivers Summer's Most Flattering Linen Dress Here's Where You Can Buy Charli XCX's Plunging Push-Up Bra That Customers Say Is Comfy and Supportive The retailer slightly outperformed analysts' expectations and the market rewarded its efforts, sending H&M's shares up 3.7 percent to end the day at 134.60 Swedish kronor. 'Our plan to focus on an elevated product offering and upgraded store experience and a strengthened brand is generating important progress across our business,' said H&M chief executive officer Daniel Ervér during a conference call with analysts and journalists. In womenswear — which has been the core of its focus as H&M seeks to become more attractive to consumers once more — as well as its sportswear offering H&M Move and online, the Swedish fast-fashion retailer has seen gains. But the CEO did admit that more progress is needed in the men's and children's categories. 'Our collections are more current, they are more on trend, more fashionable and the customer reception has been strong throughout this quarter as well as throughout the first half year,' Ervér said. 'H&M feels more relevant again and feels more exciting….It's a long-term journey to build back that, before we will see substantial financial results. We are monitoring closely what makes the biggest difference…then we put more emphasis and accelerate,' he said. With closures of underperforming stores — H&M has reduced its store count by 4 percent, notably by shuttering Monki doors, over the past year — the retailer said like-for-like sales were up 3 percent for the quarter, driven especially by its enhanced focus on womenswear and marketing initiatives to enhance its fashion-forward positioning. Overall, H&M's sales grew 1 percent in local currencies for the three months ended May 31. On a reported basis, the company registered second-quarter net sales of 56.71 billion Swedish kronor, or $5.96 billion at current exchange, down 4.9 percent year-on-year, largely due to a stronger Swedish kronor. 'Womenswear is proving to be a relative bright spot for H&M. The brand's decision to zero in on fashion-conscious female shoppers appears to be paying off, with more clarity in messaging and stronger alignment between product and positioning,' wrote Third Bridge analyst Yanmei Tang in a research note. 'However, this success has yet to extend to men's and children's lines.' Analysts warned the retailer will have its work cut out in the coming months, and geopolitical uncertainty as well as weak consumer sentiment may make ongoing improvements tough, especially given that executives said they anticipated potentially higher markdowns during the third-quarter given consumers' greater price sensitivity. 'In times of high uncertainty, consumers are particularly price sensitive. We are closely following the macroeconomic as well as geopolitical developments,' Ervér said. He also said the company is closely watching the competitive landscape in the U.S., where certain competitors have started increasing prices in the face of potential tariffs. For the current quarter so far, the company said it has seen gains, with sales in local currencies expected to be up 3 percent in June despite a negative calendar effect. But Third Bridge's Tang said H&M continues to lag its peers. 'Although H&M has increased its marketing budget, it has not yet seen a meaningful return. Zara continues to outperform by staying lean and sharply focused on platforms like social media and influencer-driven content.' 'H&M managed to print a slight beat against lowered expectations for the second quarter, largely on a slightly better gross margin and decent [operating expense] control,' wrote Deutsche Bank analyst Adam Cochrane in a research note. 'The main issue in our view is the lack of top line sales momentum in the second quarter and into June. The commentary that consumers are having to be enticed to purchase with greater promotions is not good news for the H&M brand elevation and focus on fashionability. This suggests to us that more of the gross margin gains will have to be invested to support revenue growth.' The retailer's executives lauded sequential improvements in a number of areas quarter-on-quarter, including gross margin and operating profit, as well as inventory management. H&M's inventory grew 1 percent in the three months to May, compared with 11 percent in the first quarter. Looking ahead, the retailer anticipates that the external factors that negatively impacted its purchasing through the first half are turning positive for the latter part of the year. H&M Group's second-quarter operating profits were down 16 percent to 5.91 billion Swedish kronor, or $621.1 million at constant currency, a decline it attributed to lower gross margin and currency translation effects. This represented an operating margin of 10.4 percent, versus 11.9 percent a year ago. H&M said margins were negatively impacted by external factors like the more expensive U.S. dollar and high freight costs, with higher purchasing costs for the second quarter, as well as ongoing investments in improving its offering for consumers. These were sequential improvements on business in the first quarter, and the retailer said it had tightened inventory significantly quarter-on-quarter. Ervér addressed the challenges. 'Some measures have a faster impact than others, but the direction is clear and during the year we continue to implement improvements in other parts of the business,' he said. 'The positive development in important areas such as online, H&M womenswear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development.' For the first half, sales in local currencies were up 1 percent. In reported terms for the six-month period, net revenues dipped 1 percent, to 112 billion Swedish kronor, or $11.77 billion. Operating profit dropped a massive 22 percent, to 7.12 billion Swedish kronor or $748.3 million, representing an operating margin of 6.4 percent. While H&M has been closing unprofitable stores, it is also continuing to expand, and has high hopes for its entry into the Brazilian market in the second half, with four locations and e-commerce set to open in what the company sees as a high-potential market. In total, H&M plans to open 80 new stores this year. Store upgrades in key locations are also in the cards, with a better assortment and increased capabilities like self-checkout. 'One of our key priorities for 2025 remains to elevate the shopping experience, both in the physical store as well as online,' Ervér said. The retailer said the impact of its reduced store footprint on sales would lessen in the latter part of the year. 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