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Yahoo
2 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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USA Today
3 days ago
- Entertainment
- USA Today
Anna Wintour leaving Vogue as editor-in-chief: Her most memorable career moments
Anna Wintour doesn't break news, she makes it. After nearly four decades at the helm of Vogue magazine, the editor-in-chief revealed her biggest news yet on Thursday, June 26: She will step down from her top editor role at the outlet by the year's end. Known for her stern management style and iconic A-frame bob, she has revolutionized fashion and modernized Vogue with a keen eye for emerging designers and a disdain for existing trends. Her name has become synonymous with the luxury fashion outlet – more visible than any other fashion editor in history – by producing risky covers and controversial spreads featuring Beyoncé, LeBron James, Simone Biles, former first lady Michelle Obama and A-list ex-couple Ye and Kim Kardashian. Anna Wintour stepping down as Vogue editor-in-chief in major fashion industry shift Wintour will stay on as chief content officer at Condé Nast, the magazine's parent company, and as Vogue's global editorial director. WWD and Business of Fashion also confirmed the news. As the style icon, 75, steps down this year, here is a look at the iconic moments that cemented her in fashion history. How long has Anna Wintour been at Vogue? Since her start at Vogue in 1988, Wintour has become synonymous with the high fashion scene, sitting stoically in the front row of New York Fashion Week shows, helming the Met Gala and presiding over the glossy pages of a magazine largely considered the "fashion bible." Young Anna Wintour's 1988 first cover of American Vogue Wintour's first cover as editor-in-chief is arguably one of her most edgy and experimental. For the cover shoot, Israeli model Michaela Bercu paired stonewashed Guess jean and a haute couture Christian Lacroix jacket adorned with a beaded cross. Wintour later said the look was "all very 'Like a Prayer'" in the vein of pop star Madonna's 1980s and early '90s religions-inspired era. People had mixed reactions to the shoot, Wintour later wrote in a 2012 essay: "Afterwards, in the way that these things can happen, people applied all sorts of interpretations: It was about mixing high and low, Michaela was pregnant, it was a religious statement. But none of these things was true." A post shared by FASHION ARCHIVE (@versacediary) A look at Anna Wintour's kids and if they followed in her fashion footsteps But Wintour had a simpler explanation: "I had just looked at that picture and sensed the winds of change. And you can't ask for more from a cover image than that." 1995: Anna Wintour chairs her first Met Gala The Met Gala started in 1948 as a fundraiser for the Metropolitan Museum of Art's Costume Institute, but under Wintour's more than three decades of leadership, it transformed into one of the world's most prestigious fashion events. Justin Bieber apologizes for telling wife Hailey she'd 'never be on the cover' of Vogue Wintour began co-chairing the fundraiser in 1995, wearing a floor-length, halter neck ivory gown that year to the "Haute Couture" themed event. She later went on to change the date of the gala from December to the first Monday in May each year, and, according to Vogue, tailored the guest list to include only the biggest stars in fashion, entertainment, sports and politics. 2003: Anna Wintour reportedly inspires 'Devil Wears Prada' When Lauren Weisberger's bestselling book, "The Devil Wears Prada" hit shelves in 2003, and then movie screens in 2006, it introduced Wintour to an entirely new audience and turned her into an icon. The story is based on Weisberger's experience as an assistant to Wintour at Vogue. Fans have long compared Wintor to Miranda Priestly, the icy, no-boundaries boss, played by Meryl Streep in the movie adaptation. Celebrities tell all about aging, marriage and Beyoncé in these 10 bingeable memoirs But the magazine giant didn't speak about those rumors until more than two decades later, when, at a musical adaption of the book in London, Wintour told the BBC it was "for the audience and for the people I work with to decide if there are any similarities between me and Miranda Priestly." 2014: Anna Wintour gives Kim Kardashian gift of a lifetime with Vogue cover In present day, Kim Kardashian is a fashion icon in her own right. But in 2014, just over a decade ago, Wintour garnered backlash by granting the then-"Keeping Up with the Kardashians" star a Vogue cover with Ye, formerly known as Kanye West. Ye and Kardashian appeared in a bridal embrace on the April cover that year, with Kardashian's 15-carat diamond engagement ring in full view. Inside were family photos of the pair and their eldest daughter, North West, taken by famed photographer and Wintour favorite Annie Leibovitz. Under the embrace were the hashtagged words: #WORLDSMOSTTALKEDABOUTCOUPLE. A post shared by TeamKanyeDaily (@teamkanyedaily) Met Gala, Anna Wintour honored Black men in fashion. The truth is far more complicated. Wintour's choice garnered backlash and simultaneously cemented Kardashian as a burgeoning star in the fashion world. Later, far more luxury brands began to work with Kardashian and her now-annual appearances at the A-list heavy Met Gala are among the most anticipated each year. 2017: Anna Wintour becomes a dame The editor-in-chief and fashion icon was given a new title in 2017 by Queen Elizabeth II – a Dame Commander of the British Empire, the female equivalent of a knighthood. Who is Anna Wintour? What to know about longtime Vogue chief Wintour received the honor at Buckingham Palace, wearing a pink belted Chanel coat and her classic sunglasses, for her service to journalism and fashion. Wintour was born in London and briefly led British Vogue. Vogue editor earns top honor: Anna Wintour receives Presidential Medal of Freedom 2025: Anna Wintour Medal of Freedom honor In January, Wintour joined designer Ralph Lauren, chef José Andrés, Irish singer and U2 frontman Bono, "Back to the Future" star Michael J. Fox, Oscar-winning actor Denzel Washington and TV personality Bill Nye to receive the Presidential Medal of Freedom from then-President Joe Biden. Contributing: Anna Kaufman
USA Today
3 days ago
- Entertainment
- USA Today
Who is Anna Wintour? What to know about longtime Vogue chief
In a shocking turn of events, Anna Wintour has announced she will step down as the head of American Vogue after nearly four decades at the helm. Wintour, known for her stern management style and iconic A-frame bob, revealed her decision to the magazine's staff during an editorial meeting this week. Other fashion publications, including WWD and Business of Fashion also confirmed the news. Vogue is actively searching for a new head of editorial content as part of a different organizational structure adopted four years ago. Wintour, who began her career at Vogue in 1988, is not leaving the publication completely, staying on as Condé Nast's chief content officer and Vogue's global editorial director. Here's what to know about Anna Wintour, former Vogue editor-in-chief. Who is Anna Wintour? Wintour, 75, has served as the editor-in-chief for American Vogue, the world's premier fashion magazine since 1988. Wintour has become synonymous with the high fashion scene, sitting stoically in the front row of New York Fashion Week shows, helming the Met Gala and presiding over the glossy pages of a magazine largely considered the "fashion bible." Wintour has two children, Charles and Bee Shaffer, whom she shares with ex-husband David Shaffer. This is a developing story.
USA Today
3 days ago
- Entertainment
- USA Today
Anna Wintour steps down as Vogue editor-in-chief after four decades
Anna Wintour, who took Vogue to new heights as its top editor, will stay on as Condé Nast's global chief content officer and Vogue's global editorial director After nearly four decades helming the world's premier fashion magazine, Anna Wintour is out at Vogue. The editor and style icon, 75, will step down this year, WWD and Business of Fashion report, and the magazine will seek a new head of editorial content. Wintour, known for her stern management style and iconic A-frame bob, will stay on as Condé Nast's global chief content officer and the global editorial director at Vogue, the outlets report. Since her start at Vogue in 1988, Wintour has become synonymous with the high fashion scene, sitting stoically in the front row of New York Fashion Week shows, helming the Met Gala and presiding over the glossy pages of a magazine largely considered the "fashion bible." USA TODAY has reached out to reps for Wintour and Vogue for comment. This story is developing.
Yahoo
3 days ago
- Business
- Yahoo
Tariffs, Currency Top of Mind at Curated White Resort Trade Show
MILAN — Offsetting the tariff effect, rising raw materials prices and currency fluctuations like the weak yen are issues both buyers and exhibitors at White Resort are grappling with. 'Traditional markets are so saturated and so we are looking to open up new markets like the Middle East, India and South America — places that are more effervescent — for these brands,' White show founder Massimiliano Bizzi told WWD, recognizing that U.S. President Donald Trump's tariff policy continues to be a top concern for many brands. More from WWD With Consumer Confidence Sliding, Could Shoe Sales Slow Sooner Than Later? Bridal Executives Travel to D.C. to Seek Exemption From Tariffs Boggi Milano Opens Columbus Circle Store EU countries are still subject to reciprocal tariffs of 10 percent on all exports to the U.S. and 25 percent on steel, aluminium and derivatives, cars, and components exports. White Resort, now in its third edition, ran in tandem with Milan Men's Fashion week. The three-day fair dedicated to resort ready-to-wear and accessories closed on Monday. It was envisaged as a bridge between Italian and international small and medium-sized fashion enterprises and buyers from buoyant markets in the Middle East and Asia. Strategically, organizers also positioned White Resort to meet the needs of several international retailers concentrating their buying activities during the men's fashion show. The third edition was attended by luxury boutiques, high-end department stores, concept stores and luxury hotel operators like Belmond and Rocco Forte Hotels. 'Tariffs is something we need to figure out,' said Nilufer Bracco, founder and creative director at Niluu, a luxury resortwear brand designed and based in Miami and made in Turkey. About 60 percent of Niluu's sales are generated in the U.S. and about 40 percent are generated in the Middle East. For resort 2026, they showcased their latest vegan silk collection, Calypso, a love letter to fluidity that was inspired by the sultry mythical sea nymph and the hedonistic glamour of 1970s Saint-Tropez. Caftans and ensembles were made with Cupro, which is produced by Japanese textile firm Asahi Kasei. Cupro, which is also sold under the brand name Bemberg, is soft and buttery to the touch and made with a naturally sourced regenerated cellulose fiber. Bracco, whose aim is to break into the European market, said White Resort had an elevated corps of buyers. Daisuke Yamamoto, owner of Tokyo's Editorial, said Japanese retailers are dealing with their own set of problems in light of the weak yen against the euro and U.S. dollar. To mitigate the foreign exchange effect, Yamamoto said he was on the lookout for brands that are 'not super luxury and not cheap' and that White Resort aided his quest for unique, under-the-radar brands. In the near term, currency woes are expected to mount due to rising crude oil prices, according to analysts at Citi, who forecast for the yen to weaken to 150 per U.S. dollar by September. Giuseppe Angiolini, founder and owner of Sugar, a well-known luxury concept store in Arezzo, Tuscany, said he's shifted his buying strategy due to an unpredictable macro environment. He's also adjusting to consumers' penchant for lesser-known brands. 'It's not an easy moment amid a complicated environment. Prices are way too high across the board. We used to sell mostly big brands but now we are looking for the right mix of brands, unique ones with a distinct DNA and for the right price,' he said. Serena Rovai — a former diplomat who founded Ophicina and works with local families and communities of women in places like India and Tibet — said her firm works in such small quantities that she sees the tariff impact as limited. 'We need to work on growing in key markets like the U.S. and Japan,' she told WWD. Her 2026 resort collection showcased chic folk blouses and dresses in natural cotton, silk and cashmere, many of which were enhanced with stitching and patterns from India and ruffles made in Tuscany. Saudi Brands Expand Tala Abukhaled, founder of Riyadh-based Rebirth, a prêt-à-porter brand that blends luxury with a bohemian aesthetic, said tariffs to the U.S., where she sells through New York City retail hub Doors, could rise as high as 32 percent. Tariffs to the EU are expected to hover around 12 percent. Abukhaled noted that she's currently making her collections via her own atelier. Resort collections like hers are growing due to help from the Saudi Arabia Fashion Commission and initiatives like Red Sea Fashion Week. Convertible and One Size Fits All In terms of trends, convertible items and one-size-fits-all pieces were paramount at the fair. Sorbet Island's founder Sophia Mamas showcased her latest swimwear made with a special crinkle fabric. Crinkle accommodates all body type in a flattering, fashionable and inclusive way and can fit a range of women from 40 kilos (88 pounds) up to 140 kilos (309 pounds). Through her stand at White Resort, she made on-the-spot deals with a Dubai retailer, which marks her first sale to the Emirates market. 'I've been to about 300 fairs in my lifetime and this one is super international.' In the same spirit, Italy-based Genny Spadea showcased a collaboration with Canadian abstract artist Callen Schaub, who is known for his dynamic and engaging painting performances. There were double robes with whimsical patterns and bathing suits that can be used as leotards for evening. He uses self-built devices such as trapezes, pendulums and rotating machines to apply paint to canvases, creating works characterized by vivid colors and fluid forms. In line with its mission to foster new collaborations, White organizers also forged and showcased its collaboration with Gran Canaria Swim Week, the only European fashion week entirely dedicated to beachwear. Minerva Alonso, an adviser for the Economic Development of the Government of the Island of Gran Canaria, said that White will help bring the event to the world stage. 'The presentation of the Swimwear Fashion Week during the White event represented not only a further opportunity to make our catwalk known in the European capital of fashion, but also an important step to consolidate our collaboration with White Milano.' Looking ahead, White Milano and fairgrounds operator Fiera Milano are gearing up for an all-new trade show format merging music and fashion aimed at younger consumers. Called 'Purple Sign of the Times,' the inaugural edition of the event is to be held in September. 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