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☆ H&M shares jump 14% as profit smashes expectations
▼ + stars: | 2024-03-27 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

(Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)Shares of H&M leapt 14% in early deals on Wednesday, after the Swedish retailer significantly beat profit expectations for its fiscal first quarter. Operating profit rose to 2.08 billion Swedish krona ($196 million), versus the 1.43 billion krona forecast in a LSEG poll of analysts. The company's operating margin rose to 3.9% from 1.3%, as it reiterated its target of a 10% operating margin this year. Net sales fell year-on-year in the first quarter, hitting 53.7 billion krona from 54.9 billion krona. Credibility was lent to the company's 10% operating margin target by positive sales momentum in the early spring/summer season, the Jefferies note added.

Persons: Budrul Chukrut, Inditex, Daniel Ervér, Helena Helmersson, Ervér, Jefferies Organizations: Getty, M Locations: HONG KONG, CHINA, Swedish, Hong Kong, Zara

LONDON (AP) — H&M's top executive unexpectedly stepped down Wednesday and the company's stock plunged as the fashion giant reported a drop in sales over the holiday shopping season. Political Cartoons View All 253 ImagesFor the last three months of 2023, operating profit margin fell to 7.2% from 7.8% in the previous three months. The company says its “ambition” is still operating margin of 10% this year. Sales also dropped 4% from Dec. 1 to Jan. 29 — a key holiday shopping period — compared with a year earlier. H&M is facing increasing competition from Chinese low-cost fast fashion retailer Shein as well as other fashion giants like Zara.

Persons: —, Helena Helmersson, Daniel Ervér, ” Ervér, ” Locations: Swedish, Zara

☆ H&M shares tumble 8% after weaker sales and surprise CEO exit
▼ + stars: | 2024-01-31 | by ( Jenni Reid | ) www.cnbc.com time to read: +2 min

Shares of Swedish retailer H&M were down 8% at 09:05 a.m. London time on Wednesday, after the company announced weaker sales and the surprise departure of its chief executive. H&M sales were 1% lower for 2023 in local currencies, and 4% lower year-on-year in the fourth quarter. In an unexpected leadership shake-up at the H&M group, Helena Helmersson, who has been in the CEO role for four years, will be replaced by Daniel Ervér. "The H&M group is in a strong position, with a positive profitability trend and good conditions to make further improvements in 2024," group chair Karl-Johan Persson said. "Daniel is a competent, experienced and respected leader and has the qualities needed to continue to develop the H&M group."

Persons: Helena Helmersson, Daniel Ervér, Helmersson, Ervér, Karl, Johan Persson, Daniel Organizations: Oxford Street, Regent Locations: London, United Kingdom, Zara

☆ H&M CEO quits abruptly after ‘very demanding’ times
▼ + stars: | 2024-01-31 | by ( Olesya Dmitracova | ) edition.cnn.com time to read: +2 min

“However, it has been very demanding at times for me personally and I now feel that it is time to leave the CEO role, which of course has not been an easy decision.”Helmersson, who is leaving H&M after 26 years at the company, has been replaced as CEO by Daniel Erver. He was most recently head of the H&M brand, which is the largest within the group. H&M shares plunged after the announcements and were more than 9% lower in midday trade in Stockholm. Earlier this month, it was forced to remove a school uniform advertisement in Australia after social media users complained it sexualized children. “We are deeply sorry for the offense this has caused,” H&M told CNN.

Persons: London CNN — Helena Helmersson, ”, ” Helmersson, Daniel Erver, Helmersson, “ Organizations: London CNN —, Reuters, CNN Locations: Swedish, Stockholm, Myanmar, Australia

In the past year, clothing retailers have sought to clear excess stock that had piled up due to a shift in consumer demand to essentials from discretionary items like clothing. But with fourth-quarter temperatures expected to start off warm, according to weather tracking firm Weather Trends International, stores carrying winter styles and gear could find themselves loaded with inventory at the end of the season. European company Pepco Group (PCOP.WA) also noted that the landing of its autumn and winter clothing inventory had coincided with persistent record-warm weather in its core Central and Eastern European markets. In the United States, temperatures could rise by 2 to 12 degrees Fahrenheit on average in the October-December period compared with last year, according to Weather Trends International. Abercrombie & Fitch (ANF.N) also said there was strong demand for "seasonless products" in the second quarter, particularly in the men's category, as customers picked out year-round clothing items and styles.

Persons: Helena Helmersson, Andy Bond, Bill Kirk, Clodagh, David Swartz, Robert Woods, Kristen D'Arcy, Abercrombie, Simon Wolfson, Ananya Mariam Rajesh, James Davey, Helen Reid, Matthew Lewis Organizations: Reuters, Pepco, Amazon.com, REUTERS, Walmart, Dick's Sporting, Costco Wholesale, Morningstar Research, Vision Brands, Fitch, Thomson Locations: United States, Europe, Cos, Eastern, Grafton, Dublin, Ireland, outerwear, Bengaluru, London

☆ H&M looks out of sync with shoppers’ reality
▼ + stars: | 2023-09-15 | by ( ) www.reuters.com time to read: +2 min

The H&M clothing store is seen in Times Square in Manhattan, New York, U.S., November 15, 2019. REUTERS/Mike Segar Acquire Licensing RightsMILAN, Sept 15 (Reuters Breakingviews) - H&M (HMb.ST) CEO Helena Helmersson is feeling the heat. H&M has probably been operating under the illusion that it could maintain pricing power while consumers are being hit by inflation. Its $120 billion rival Inditex (ITX.MC), whose Zara brand is considered more upmarket than H&M, has started to pause price increases. Right now, H&M trades on the same 20 times forward earnings multiple than Inditex.

Persons: Mike Segar, Helena Helmersson, “, That’s, Shein, Inditex's, Lisa Jucca, George Hay, Streisand Neto Organizations: REUTERS, Reuters, RBC, X, Thomson Locations: Manhattan , New York, U.S, Swedish

☆ H&M to grow third-party brand strategy as online rivalry intensifies
▼ + stars: | 2023-06-29 | by ( ) www.reuters.com time to read: +2 min

STOCKHOLM, June 29 (Reuters) - H&M (HMb.ST) plans to sell more third-party brands online and in stores, CEO Helena Helmersson said on Thursday, as one of the world's top fashion retailers ramps up its effort to take on e-commerce rivals. Its marketplace strategy, launched last year, is aimed at challenging online rivals like Zalando, ASOS, and fast-fashion giant Shein as competition intensifies. Inditex-owned (ITX.MC) Zara features other brands only for exclusive collaborations, such as with South Korean label Ader Error and British shoemaker Clarks. "This has been really well received by customers who also complement the H&M assortment with other brands," Helmersson said. "Inditex's thinking is focused on its own brands, own stores and own online," said Lowery.

Persons: Helena Helmersson, M's, Zara, Clarks, Helmersson, Geoff Lowery, Inditex's Zara, Lowery, Marie, Helen Reid, Josephine Mason, Emma Rumney Organizations: Adidas, South, Marie Mannes, Thomson Locations: STOCKHOLM, Cos, Swedish, Monki, Hong Kong, Stockholm, London

☆ H&M shares jump 11% as summer collection boosts profit
▼ + stars: | 2023-06-29 | by ( ) www.cnbc.com time to read: +3 min

Sales from June 1-27 were up 10% from a year earlier, a good sign for the start of H&M's third quarter. The womenswear collection drove the boost in sales, Helmersson told a news conference. Shares in the world's second-biggest fashion retailer jumped 11% to hit their highest level since February 2022. The stronger-than-expected profit and inventory position helped investors digest a weaker margin of 8.2% for the second quarter, down from 9.2% a year earlier. H&M last year announced layoffs and other cost cuts that it said would help it reduce costs from the second half of 2023 onwards.

Persons: Helmersson, Helena Helmersson, Inditex, Cedric Rossi, Bryan Garnier, Rossi Organizations: Oxford Locations: London, Europe, Zara, Paris, Swedish

☆ H&M’s targets may call the peak on cost inflation
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

On Thursday, the $20 billion fast-fashion retailer said its sales rose by 3% year-on-year in the three months that ended in Feb. 28. More importantly, she is now targeting a 10% operating margin in 2024. The retailer’s operating margin halved in 2022 to 3.2% as the price of cotton, freight, staff and energy costs ate up a larger share of its revenue. Delivering a 10% operating margin next year would imply that she expects the worst to be over in terms of commodity-price inflation and a wider economic slowdown. H&M’s share price rose by 15% on Thursday.

Operating profit in the Swedish group's fiscal first quarter was 725 million Swedish crowns ($69.73 million) against a profit of 458 million crowns a year earlier. H&M's operating profit margin was 1.3%, up from 0.9% a year earlier. Helmersson said the company expects a gross margin recovery over the year and is making progress towards its goal of a 10% operating margin next year. Analysts at Credit Suisse said it would be "very challenging" for H&M to return to a 10% margin in 2024. H&M said net sales for March were expected to increase by 4% in local currencies compared with the corresponding period last year.

☆ Truckers Expect an Inventory-Driven Rebound Later This Year
▼ + stars: | 2023-02-01 | by ( Liz Young | ) www.wsj.com time to read: +4 min

Trucking companies are pinning hopes for a rebound in freight demand on the second half of this year, saying their retailer customers expect to resume restocking after winding down inventories over recent months. Carrier executives say they are hearing from their shipping customers that they expect to return to a more normal ordering cycle this year and start moving bigger volumes closer to the fall shopping season following volatile retail spending and distribution in 2022 that left them overstocked. Inbound volumes at U.S. ports are also down, suggesting fewer goods from overseas are flowing into domestic freight networks. “Trucking is definitely down right now,” said Tom Nightingale, CEO of AFS Logistics, a Shreveport, La.-based logistics operator. She said on a Jan. 18 earnings conference call that the company “has good signals” from shipping customers that they plan to pick up their ordering in the second quarter.

☆ H&M highlights fast-fashion gloom as luxury takes hit in China
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +4 min

Shares in H&M, the world's No. 2 fashion retailer, fell as much as 6% in early trade after quarterly operating profit sank to 821 million Swedish crowns ($79.7 million) from 6.26 billion a year earlier. Zara has outperformed rivals after selling higher-priced garments and enticing shoppers who might have otherwise spent money at luxury stores. Disappointment over the impact of the China disruptions on its margins caused a record-breaking run in LVMH shares to briefly halt on Friday. The luxury industry is nevertheless expected to be one of the biggest winners from the loosening of restrictions that kept shoppers out of stores in China for months.

☆ Fashion retailer H&M's profit tumbles as costs bite
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +3 min

Operating profit in the period, the world's second-biggest fashion retailer's fiscal fourth quarter, was 821 million crowns ($79.7 million) against 6.26 billion a year earlier and a mean forecast of 3.67 billion in a Refinitiv poll of analysts. The hit from quitting Russia, higher raw material, freight and energy costs, currency translation effects and the restructuring charge totalled around 5 billion crowns, Chief Executive Helena Helmersson said. H&M in September launched a drive to cut costs by 2 billion crowns annually, with savings from layoffs and other measures expected to start showing from the second half of 2023. The group flagged in November it would cut around 1,500 jobs and book a roughly 800 million crown restructuring charge in the fourth quarter for the programme. Britain's Superdry (SDRY.L) on Friday cut its profit forecast for this year as its wholesale business underperformed.

☆ Fashion retailer H&M's profit tumbles more than expected as costs bite
▼ + stars: | 2023-01-27 | by ( ) www.reuters.com time to read: +2 min

Operating profit in the period, the world's second-biggest fashion retailer's fiscal fourth quarter, was 821 million crowns ($79.7 million) against 6.26 billion a year earlier and a mean forecast of 3.67 billion in a Refinitiv poll of analysts. The hit from quitting Russia, higher raw material, freight and energy costs, currency translation effects and the restructuring charge totalled around 5 billion crowns, Chief Executive Helena Helmersson said. H&M in September launched a drive to cut costs by 2 billion crowns annually, with savings from layoffs and other measures expected to start showing from the second half of 2023. The group flagged in November it would cut around 1,500 jobs and book a roughly 800 million crown restructuring charge in the fourth quarter for the programme. H&M proposed a dividend for 2022 of 6.50 crowns per share, unchanged from the year before, roughly matching expectations.

☆ H&M to Lay Off 1,500 Staff to Stem Rising Costs
▼ + stars: | 2022-11-30 | by ( Trefor Moss | ) www.wsj.com time to read: 1 min

H&M was slower to bounce back after the pandemic compared with some of its competitors. H&M Hennes & Mauritz AB said it would cut around 1,500 jobs from its global workforce as retailers around the world face pressure from high inflation and weakening consumer demand. The Swedish fast-fashion company disclosed the layoffs Wednesday as part of a broader efficiency program aimed at reducing administrative and overhead costs. As part of that effort, H&M had been reviewing its organization, Chief Executive Helena Helmersson said.

☆ Fashion retailer H&M to cut 1,500 jobs in cost saving drive
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: 1 min

OSLO, Nov 30 (Reuters) - Swedish fashion retailer H&M (HMb.ST) will cut some 1,500 jobs as part of its cost cutting drive and book a restructuring charge of 800 million Swedish crowns ($75.80 million) in the fourth quarter, it said on Wednesday. In September, H&M, the world's No. 2 fashion retailer, launched a plan to save 2 billion Swedish crowns per year. "We will support our colleagues in finding the best possible solution for their next step," she added. ($1 = 10.5546 Swedish crowns)Reporting by Terje Solsvik, editing by Stine Jacobsen and Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ Fashion retailer H&M to cut 1,500 jobs in cost-saving drive
▼ + stars: | 2022-11-30 | by ( ) www.reuters.com time to read: +1 min

OSLO, Nov 30 (Reuters) - The world's No.2 fashion retailer H&M (HMb.ST) said on Wednesday it will cut 1,500 jobs to reduce costs amid softening demand as consumers cope with a surge in cost of living. The Swedish company, which employs roughly 155,000 people, had launched a plan to save 2 billion Swedish crowns per year in September. A restructuring charge of 800 million Swedish crowns ($75.80 million) would be booked in the fourth quarter, H&M said in a statement. The benefits would start to kick in from the second half of next year, H&M said. ($1 = 10.5546 Swedish crowns)Reporting by Terje Solsvik, editing by Stine Jacobsen, Louise Heavens and Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ H&M to cut costs as profits hit by inflation, cautious shoppers
▼ + stars: | 2022-09-29 | by ( Anna Ringstrom | ) www.reuters.com time to read: +4 min

Pretax profit in the June-August period, the Swedish group's fiscal third quarter, fell to 689 million crowns ($60.9 million) from 6.09 billion a year-earlier. Five analysts polled by Refinitiv had on average forecast a 2.98 billion crown profit. "Overall, these factors had a substantial negative impact on profit for the quarter," CEO Helena Helmersson said. "We have chosen not to fully compensate for the increased costs, which is reflected in the gross margin." Market leader Inditex (ITX.MC), the owner of Zara, which has been weathering the tough market conditions better than H&M, increased sales in its May-July quarter.

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