Latest news with #fashionretail
Daily Mail
15-07-2025
- Business
- Daily Mail
Sosandar sales hit by Marks & Spencer cyber attack: Women's fashion retailer slashes profits forecast by 73%
Sosandar sales have been hit by the cyber attack at Marks & Spencer. The women's fashion retailer sells products such as dresses and suits through the M&S website, which is its second largest third-party partner behind Next. But it has made no sales through the website since mid-April when M&S fell victim to a hack that saw it suspend online shopping for more than six weeks. Sosandar has cut its sales expectations from £46.2million to £43.6million for the year to March 31, 2026. And it slashed its annual profit forecast from £1.5million to just £400,000. It said it was 'cautiously anticipating' lower sales through M&S for the rest of the year. It only resumed trading on the website last week. Sosandar, founded as an online retailer in 2015, yesterday paused plans to open 50 shops over the next five years.
The Guardian
26-06-2025
- Business
- The Guardian
Clothing prices rise in US as Trump tariffs kick in, H&M boss says
Clothing prices are beginning to rise in the US as Donald Trump's tariffs on imported goods start to have an effect, according to the boss of H&M, one of the world's biggest fashion retailers. Daniel Ervér, the chief executive of the Swedish retailer, said: 'In the US, we are starting to see some competitors increasing prices. Different competitors are acting in different ways. Some more aggressively and some more cautiously.' He said it was unclear how the market would develop as there was a 'fast-moving situation' on tariffs, as the Trump administration had changed the rules on several occasions. Nevertheless, Ervér said H&M was aiming to be 'very, very competitive' on price, fashionability and sustainability. He said the group's wide range of sourcing locations meant it had 'good flexibility' to mitigate the impact of any tariffs imposed by the US on goods imported from certain countries so that it might have an advantage over some competitors. Despite rising costs on wages, tariffs and other factors, H&M made clear there was pressure to keep prices down as shoppers were keeping a tight rein on their spending amid global turmoil and rising household bills. Ervér said: 'The customer is very price sensitive.' The group, which owns brands including Cos, & Other Stories and Arket as well as its main chain, said it was likely to have to discount more than last year around the world in the coming months as some retailers were already having to cut prices to prompt uncertain shoppers to splash out amid global events. The comments came as H&M revealed that sales had risen just 1%, in local currencies, to 112bn Swedish kroner (£8bn) in the first half of the year as it closed 4% of its stores. Operating profit slid nearly 17% to 5.9bn Swedish kroner. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The group said it planned to close 200 of its 4,200 stores this year but would also open 80 new outlets including its first three in Brazil and stores in Venezuela. The group is also trying to offset rising wage costs around the world with more use of self-checkouts in stores, using smart RFID (radio frequency identification) tags inside clothes to help scan in basketloads of items in one go.
Daily Mail
26-06-2025
- Business
- Daily Mail
H&M profits fall as stores close and boss weighs 'uncertain times'
H&M Group has unveiled a sharp fall in operating profits after the retailer closed stores and suffered the impact of currency fluctuations and high freight costs. The world's second-largest listed fashion retailer saw operating profits slump 22 per cent for the six months to SEK 7.1billion, or £548million, in the six months to 1 May. It credited the drop to a lower gross margin driven by 'negative external factors such as a more expensive US dollar and high freight costs, but also by markdowns and the company's investments in the customer offering'. H&N also finished the second quarter with 4 per cent fewer shops worldwide than it had at the same point a year ago. At the beginning of the second quarter, the business had 125 fewer stores than at the same time a year earlier, with net store closures coming in at 47. Across all its locations, it had 4,166 shops on 31 May 2025, against 4,319 a year ago. Update: H&M Group flagged store closures and lower operating profits in its latest half-year update During the first six months of the current financial year, 24 new stores opened and 111 shops closed, H&M Group said. The group, which operates H&M and brands like Cos and & Other Stories, said there were 3,706 H&M stores open globally on 31 May 2025, compared to 3,832 the previous year. H&M eyes improvement The world's second-largest listed fashion retailer said it expected sales in June, measured in local currencies, to rise 3 per cent, representing an improvement after a 6 per cent fall a year ago in the same period. H&M also said it was ploughing on with plans to open new shops and an online shopping website in Brazil later this year. The group said it would benefit from Brazil's population of around 200million people. Chief executive, 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 womenswear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development. '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. In November, H&M confirmed it would be closing its call centre in Edinburgh, Scotland, with 150 jobs lost. H&M blamed increased competition, changing customer behaviours and operational costs for the closure. The Swedish-based business announced during the Covid-19 pandemic that it planned to close 250 shops globally. This year, the group closed all its Monki stores across Britain. British retailers face a barrage of higher costs as a result of changes to employer national insurance contributions and the national minimum wage announced in the Autumn Budget by Rachel Reeves last year.
Yahoo
23-06-2025
- Business
- Yahoo
Trump slump smashes major Aussie company
A brutal two-punch combo of Trump tariffs and inflation shocks is crushing the stock prices of major Australian fashion retailers, with luxury brand Cettire leading the dramatic slump. The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m. Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform. 'It's safe to say there are some serious questions about a potential receivership,' she said. In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. The company now has $45m left in cash, down from $79m in March. Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment. 'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said. 'As a result, elevated promotional activity persists across the market.' While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility. It is not the only ASX-listed apparel business to record a disturbing slump in value this year. Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent. City Chic has retreated 26 per cent. At the start of the year, KMD was worth about $300m. Now it is worth less than $200m. Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses. In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year. 'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said. 'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.' In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. 'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said. But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned. Rising oil and electricity prices are also eating away at consumer spending power. 'The things we're paying every quarter and every month are far higher than they were,' she said. 'Petrol costs are up markedly and that's because the oil price is up. 'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper. 'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.' The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
Zawya
10-06-2025
- Business
- Zawya
South Africa: End of tax loophole for Shein and Temu starting to have impact, say local retailers
South Africa's closure of a tax loophole that benefited global discount e-commerce retailers Shein and Temu is starting to show positive signs as some consumers reject the higher prices, the CEOs of local fashion retailers Mr Price and TFG said. Last November, South Africa's tax authority ended the practice known as "de minimis", which allowed companies to drop-ship packages valued at less than R500 rand from suppliers in China to consumers in South Africa, paying a flat rate of 20% in lieu of customs duties, and no VAT of 15%. Other markets including the United States, Britain and the European Union are also closing or planning to close loopholes that have given low-cost online platforms like Shein and Temu, owned by PDD Holdings', pricing advantages. "There's nothing punitive about them, it's just levelling the playing field so that everybody trading in South Africa and importing products pays exactly the same duties," TFG CEO Anthony Thunström told Reuters in an interview after the company's earnings release. Both Thunström and Mr Price CEO Mark Blair said it was difficult to get official data to quantify the exact impact on the fast-fashion giants. "But our understanding is that the closure of that loophole has significantly slowed down some of the international pure play online into South Africa," Thunström said. Local brick-and-mortar fashion and e-commerce retailers had urged South African regulators to impose a 45% import duty on all clothing imports, no matter the price, to level the playing field. "One thing all of us have seen on Shein is the social media outrage that's now taken place because of higher prices, so it does make us feel comfortable that the new legislation has been applied correctly," Blair told investors during an earnings presentation. "I think it's still a bit erratic, not across the board and if I look at our own e-commerce sales, it grew slightly ahead of our store sales, so there must be some positive impact," he added. Mr Price and TFG are also investing in technology and enhancing product ranges as they bid to gain market share. Mr Price also added that it expects to invest R1.6bn this financial year ending March 2026 in about 200 new stores, supply chain, store revamps and technology, while TFG said it plans to open over 100 new stores. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
