H&M hails strong summer as profits beat target

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1 年前

STORY: H&M is feeling good about the summer.

The world’s second biggest fashion retailer said Thursday (June 29) that second-quarter profits hit almost $439 million.

That was down on this time last year, but well ahead of analyst forecasts.

The Swedish firm said its summer collection was doing well as warm weather arrived in Europe.

It also said the numbers were evidence that a cost-cutting drive was starting to pay off.

Chief Executive Helena Helmersson said the firm had increased sales in many markets despite inflation putting the squeeze on consumers.

Shares in the company jumped 14% by late morning, passing 16-month highs.

H&M has been struggling to keep pace with arch-rival and market leader Inditex, owner of the Zara brand.

It’s also faced pressure from rapidly growing fast-fashion retailer Shein, which has been grabbing market share.

In response, it’s tried to boost its fashion appeal, and sought to lift sales its Cos brand.

H&M hopes shoppers at the more upmarket label will be less affected by a cost-of-living crunch.

Last year it also announced layoffs and other cost-cutting measures which it said would start to save money from the second half of this year.