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Inditex shares have risen around 64% over the past 12 months as the world's biggest clothing retailer successfully passed cost increases on to shoppers and reported record profit margins. But after several U.S. retailers including Macy's and Foot Locker warned of weak consumer spending, fears of an economic slowdown have come back into focus. "I think companies will be more disciplined and will reduce pricing where they think they can gain volumes," said Fabio Di Giansante, portfolio manager at Amundi, which holds shares in Inditex. In the six months to July last year, Inditex's sales increased by 25% and profits climbed by 41% - but that was in comparison with a period marked by COVID-19 lockdowns around the world. According to Bernstein analysts, Inditex's key rival H&M (HMb.ST), set to report third-quarter sales on Friday, has pushed through more price increases than peers over the past year.

Persons: Inditex, Locker, Inditex's, Fabio Di Giansante, Geoffroy De Mendez, De Mendez, Bershka, Massimo Dutti, Bernstein, Amundi's Di Giansante, Helen Reid, Corina Pons, Emelia Sithole Organizations: Macy's, Inditex . Bank of America, Thomson Locations: MADRID, Zara, Amundi, Inditex ., U.S, London, Madrid

"Increasingly we are going to turn used clothes into raw material from Europe for fashion companies." Also in Spain, rivals including H&M, Mango and Inditex have created a non-profit association to manage clothing waste, responding to an EU law requiring member states to separate textiles from other waste from January 2025. OBSTACLESThe obstacles to significantly reducing clothing waste are formidable, despite the EU crackdown, industry sustainability commitments and initiatives like the Moda Re expansion. Adidas (ADSGn.DE), Bestseller, and H&M (HMb.ST) have invested in Finnish start-up Infinited Fiber Company, which manufactures fibre out of textile waste, cardboard and paper. As in Spain, textile waste associations would be set up in each country.

Persons: Albert Alberich, Inditex, Dijana Lind, Hugo Boss, Lind, Moda, Aissatou Boukoum, Mauro Scalia, Corina Pons, Helen Reid, Horaci Garcia, Nacho, Frank Jack Daniel Our Organizations: BARCELONA, Moda, Caritas, Union, European Commission, Union Investment, Adidas, McKinsey, Reuters, EU, ReHubs, Moda Re, United Nations, Inditex, Puma, Infinited Fiber Company, Thomson Locations: Spain, Barcelona, Spanish, Europe, Zara, Bilbao, Valencia, EU, Frankfurt, ReHubs Europe, Mali, Sant, AFRICA, Cameroon, Ghana, Senegal, Africa, Senegalese, Germany, Texaid, Switzerland, Vestisolidale, Italy, France, EURATEX, Madrid, London, Nacho Doce

☆ Zara's billionaire founder – one of the world's richest people – has just bought a $232 million luxury Chicago apartment tower
▼ + stars: | 2023-08-23 | by ( Grace Dean | ) www.businessinsider.com time to read: +2 min

Amancio Ortega has purchased a 45-story Chicago apartment tower. Ortega, founder of Zara parent company Inditex, splashed out $232 million on the property. Pontegadea, Ortega's family office, bought the 45-story 727 West Madison property, a company spokesperson told Insider. AdvertisementAdvertisementPrices start at $2,166 a month for a studio, rising to $6,083 for the most expensive apartment available, a three-bed. Ortega is the world's 14th richest person, with an estimated net worth of around $75.2 billion, the Bloomberg Billionaires Index shows.

Persons: Amancio Ortega, Ortega, there's, Charles Koch, Michael Dell, Walton, Inditex Organizations: Seattle HQ, Toronto's Royal Bank, Service, Madison, Chase Bank, Bloomberg, Pontegadea, Meta's Seattle, Royal Bank Plaza Locations: Chicago, Zara, Manhattan, Wall, Silicon, Cook County, Meta's, Toronto

TENERIFE, Canary Islands, Spain, Aug 18 (Reuters) - A wildfire that has blanketed much of the Spanish island of Tenerife with smoke and ash has slowed its advance thanks to containment efforts and more favourable weather during the night, authorities said on Friday. Fernando Clavijo, regional leader of the Canary Islands, said there were no more evacuations overnight and officials were considering lifting restrictions on almost 4,000 residents who had been ordered to stay home. [1/2]Pine trees burn in a forest fire in Candelaria on the island of Tenerife, Canary Islands, Spain August 16, 2023. Scorching heat and dry weather this summer have contributed to unusually severe wildfires in Europe and Canada. On Friday, Spain's AEMET weather service expected maximum temperatures of 32C in Tenerife.

Persons: Fernando Clavijo, We've, Borja Suarez, Mount Teide, Andrei Khalip, Frances Kerry Organizations: REUTERS, Teide Astrophysics, Thomson Locations: TENERIFE, Canary Islands, Spain, Spanish, Tenerife, Candelaria, Europe, Canada, Maui, Lahaina

London/Hong Kong CNN —H&M has decided to stop operating in Myanmar following an increase in allegations of labor abuses at garment factories in the country. As of March, H&M sourced from 41 factories with nearly 42,000 workers in the country, according to company figures. Its withdrawal comes after new allegations published by the Business and Human Rights Resource Centre (BHRRC), a workers’ advocacy group. The organization has been tracking cases of alleged labor and human rights abuses against garment workers in the country for years. “Things are getting worse for garment workers — and quickly,” the organization said.

Persons: Hong Kong CNN —, ” “, ”, doesn’t, Inditex, Spencer, Primark, “, BHRRC Organizations: Hong Kong CNN, CNN, Business, Human Rights Resource, Chevron, Initiative, Human Rights, Reuters Locations: Hong Kong, Myanmar, Swedish, Zara, Stockholm, TotalEnergies, British, ”

☆ Exclusive: H&M says it will "phase out" sourcing from Myanmar
▼ + stars: | 2023-08-17 | by ( Helen Reid | Thomson Reuters | London-Based Reporter Covering The European Retail Sector Through A Global Lens. Focusing On Companies Including Adidas | ) www.reuters.com time to read: 1 min

LONDON, Aug 17 (Reuters) - The world's second-biggest fashion retailer H&M (HMb.ST) has decided to gradually stop sourcing from Myanmar, it told Reuters on Thursday, as reports of labour abuses in garment factories in the country increase. H&M became the latest brand to cut ties with suppliers in the country after Zara owner Inditex (ITX.MC), Primark (ABF.L), Marks & Spencer (MKS.L) and others. "After careful consideration we have now taken the decision to gradually phase out our operations in Myanmar," H&M said in an email to Reuters. "We have been monitoring the latest developments in Myanmar very closely and we see increased challenges to conduct our operations according to our standards and requirements." Reporting by Helen Reid, Editing by Matt ScuffhamOur Standards: The Thomson Reuters Trust Principles.

Persons: Inditex, Spencer, Helen Reid, Matt Scuffham Organizations: Reuters, Thomson Locations: Myanmar, Zara

TENERIFE, Canary Islands, Spain, Aug 17 (Reuters) - Firefighters on Thursday struggled to contain a wildfire that broke out in a mountainous national park on the Spanish island of Tenerife, prompting authorities to evacuate at least 3,800 people. "The night has been very tough...This is the most complex fire we've had in the Canary Islands in the last 40 years," the region's leader, Fernando Clavijo, told a news conference. [1/5]EIRIF forest firefighters work during the extinction of the forest fire in Arafo on the island of Tenerife, Canary Islands, Spain August 16, 2023. Last week, a heatwave in the Canary Islands left many areas bone dry, heightening the risk of wildfires. This summer, firefighters have extinguished a series of forest fires on the islands of Gran Canaria and La Palma, which form part of the Canary Islands archipelago.

Persons: Alba Gil, we've, Fernando Clavijo, Pedro Martinez, Borja Suarez, Clavijo, Teide, Aena, Andrei Khalip, Christina Fincher, Alexandra Hudson Organizations: REUTERS, Authorities, Gran Canaria, La, Alexandra Hudson Our, Thomson Locations: TENERIFE, Canary Islands, Spain, Tenerife, La Esperanza, Canary, Europe, Canada, Lahaina, Arafo, El Rosario, La Orotava, Spanish, Gran

☆ Exclusive: H&M probes Myanmar factory abuses as pressure intensifies
▼ + stars: | 2023-08-16 | by ( Helen Reid | Thomson Reuters | London-Based Reporter Covering The European Retail Sector Through A Global Lens. Focusing On Companies Including Adidas | ) www.reuters.com time to read: +5 min

The BHRRC has been tracking allegations of workers' rights abuses in garment factories since the military junta took power in Myanmar, plunging it into political and humanitarian crisis. There have been 21 cases of alleged abuses linked to Inditex suppliers over the two-year period, and 20 linked to H&M suppliers, according to the report. The Myanmar Garment Manufacturing Association did not reply to a request for comment. It expects its final orders from Myanmar suppliers to ship before the end of this year, but has also increased its presence on the ground. H&M and Bestseller are among 18 brands that are part of the European Union-funded MADE project aimed at improving labour conditions in Myanmar's garment factories.

Persons: Inditex, Spencer, Primark, we've, Karina Ufert, Vicky Bowman, Bowman, Helen Reid, Vanessa O'Connell, Marguerita Choy, Emelia Organizations: Reuters, Zara, Human Rights Resource, Myanmar Labour News, Myanmar Garment Manufacturing Association, Ethical Trade, European Union, European Chamber of Commerce, Myanmar Centre, Responsible Business, Thomson Locations: Myanmar, British, MYANMAR Spanish, Danish

That's down from 13% of Nike's women's team products which sold out during the same tournament in 2019, the data shows. For that reason, marketers must bear in mind the risk that the growing fanbase could see their support for women's soccer as disingenuous. To recognize the impact grassroots teams have in creating excitement about women's soccer, Adobe's ad also featured London-based community women's soccer clubs Peaches FC and Baesianz FC, said Sabina Strasser, Senior Director, Brand Experience EMEA at Adobe. Sporting goods retailer Fanatics has more than 475 U.S. women's team products for sale this year, up from about 175 in 2019, the company told Reuters. As of Monday, the generic Adidas Women's World Cup soccer ball was among its top sellers in FIFA World Cup Gear.

Persons: Sam Kerr, Carl Recine, Megan Rapinoe, Alex Morgan, Grace Geyoro, Martine Rose, Nike's, Jan Runau, Yvonne Henderson, Bob Dorfman, England's Lionesses, Mary Earps, Bjorn Gulden, Sabina Strasser, Amy Tennery, Sheila Dang, Kate Masters, Shri Navaratnam Organizations: Soccer, Nike FC, REUTERS, Adidas, misstep, U.S, Nike, FIFA, Sporting Goods, Women's, Asisat, United States Women’s, Pricing, In, Pinnacle Advertising, Germany's Bayern Munich women's, Peaches FC, Baesianz FC, Brand, EMEA, Adobe, Sporting, Reuters, U.S ., Thomson Locations: Sydney, Australia, AUCKLAND, New Zealand, DICK's, U.S, French, Barcelona, England, Sweden, Spain, Tuesday's, Germany, London, Auckland, Dallas , Texas, New York

The largest island, Tenerife, received 4% more tourists in June than in the pre-pandemic 2019. But there were 22% fewer Germans, a clear sign of how the energy crisis and economic woes have weighed on travel decisions. Meanwhile, hotels in traditional hotspots for German tourists, such as the town of Puerto de la Cruz in northern Tenerife, are now filling up with "weather tourists". This year, 18% fewer Germans went on summer holidays than in 2019, according to Germany's tourism industry group DRV. According to Spanish official data, in the first half of 2023, 14% fewer Germans visited Tenerife than in 2019.

Persons: Borja Suarez, Shizuko Hotta, Hotta, Diego Bejarano, Enrique Talg, Corina Pons, Sarah Marsh, Andrei Khalip, Angus MacSwan Organizations: Gran Canaria, REUTERS, Borja Suarez PUERTO, LA, la, Thomson Locations: Puerto Rico, Gran, Spain, LA CRUZ, Canary Islands, Africa, Tenerife, Puerto, la Cruz, Lake Constance, Germany, Spanish, United States, Canada, U.S, Europe

☆ Adidas turnaround gathers pace as Yeezy boosts margins
▼ + stars: | 2023-08-03 | by ( Helen Reid | Thomson Reuters | London-Based Reporter Covering The European Retail Sector Through A Global Lens. Focusing On Companies Including Adidas | ) www.reuters.com time to read: +4 min

Adidas has to manage Yeezy drops very carefully, Gulden said, adding that the company's guidance was conservative. Adidas' 2023 outlook does not include the second Yeezy release, which is being sold through retailers as well as Adidas' own channels. JD Sports (JD.L) said it had started selling Yeezy shoes from the second drop on Wednesday. Citi analysts expect further Yeezy drops to generate 1.5 billion euros ($1.64 billion) in revenues and 700 million euros in earnings after Adidas' planned charity donations. Adidas donated 10 million euros in the second quarter and set aside 100 million euros for further donations to charities including the Foundation to Combat Antisemitism and the Anti-Defamation League.

Persons: Bjorn Gulden's, Ye, Gulden, Harm Ohlmeyer, Kanye West, Shannon Stapleton, Zuzanna Pusz, Pusz, Liu Qingyi, Shuting Qiu, Helen Reid, Mark Potter, Jan Harvey, Alistair Bell Organizations: FX, Adidas, JD, Citi, Foundation, Combat, Defamation League, ADIDAS, REUTERS, UBS, North, Thomson Locations: Garden City , New York, U.S, Greater China, China, Shanghai, North America

☆ Yeezy destocking helps lift Adidas sales outlook
▼ + stars: | 2023-08-03 | by ( Helen Reid | Thomson Reuters | London-Based Reporter Covering The European Retail Sector Through A Global Lens. Focusing On Companies Including Adidas | ) www.reuters.com time to read: +3 min

Sales of surplus Yeezy shoes generated around 400 million euros ($437 million) in the second quarter, helping Adidas reduce its predicted loss for the year to 450 million euros, down from the 700 million euro loss previously expected. JD Sports (JD.L) said it had started selling Yeezy products from Adidas' second release of Yeezy shoes on Wednesday. Adidas said its 2023 outlook does not include the second Yeezy release. Citi analysts expect further Yeezy drops to generate 1.5 billion euros in revenues and 700 million euros in earnings after Adidas' planned charity donations. North America was the laggard, with sales dropping 16.4% in currency-neutral terms, which Adidas put down to high inventory levels there.

Persons: Kanye West, Shannon Stapleton, Bjorn Gulden's, Ye, Cristina Fernandez, Fernandez, Gulden, Liu Qingyi, Shuting Qiu, Helen Reid, Sonali Paul, Mark Potter, Jan Harvey Organizations: Adidas, REUTERS, FX, Foundation, Combat, Defamation League, Telsey, JD, Citi, North, Thomson Locations: Garden City , New York, U.S, New York, Greater China, China, Shanghai, North America

Ferrovial has been providing artificial intelligence services to its businesses and employees since April after two years of work on an AI solutions centre in Spain. Ferrovial is working with Microsoft AI products, but has its own, completely isolated version, and is building the framework for an AI service that will help its various businesses. The company is also using AI tools on its highways to detect cars going the wrong way, objects or people on the road, and is working on perfecting the sensors. In parallel, Ferrovial is working on ways to communicate directly with motorists using its U.S. toll roads and give them more information than just the rates. AI will also help it contact potential users to offer discounts and attract more traffic.

Persons: Ferrovial, Luis Carlos Pietro Fernandez, Fernandez, Corina Pons, Andrei Khalip, Conor Humphries Organizations: Heathrow, Reuters, Microsoft, Thomson Locations: MADRID, Spain, Highways, Madrid, Netherlands, United States, Heathrow, Britain's, New, JFK

☆ Zara founder Ortega's real estate fortune hit $20 bln in 2022
▼ + stars: | 2023-07-27 | by ( ) www.reuters.com time to read: +1 min

MADRID, July 27 (Reuters) - The investment firm of Spanish billionaire Amancio Ortega, the founder of fashion giant Inditex (ITX.MC), on Thursday reported a 2.8 billion-euro jump in the market value of its real estate assets last year, to 18.1 billion euros ($20.08 billion). The United States, where Inditex plans to open more of its Zara stores, has been one of Ortega's main markets. Pontegadea booked a net profit of 2 billion euros last year, up from 1.6 billion euros in 2021, mainly due to dividends from Inditex, which soared as its key brand Zara quickly recovered from the COVID-19 pandemic. Pontegadea, which for years mainly focused on real estate, has also been looking into energy companies, buying stakes in solar plants, electricity grid operators and wind farms. ($1 = 0.9038 euros)($1 = 0.9015 euros)Reporting by Corina Pons; editing by Catarina Demony and Andrei KhalipOur Standards: The Thomson Reuters Trust Principles.

Persons: Amancio Ortega, Ortega, Pontegadea, Corina Pons, Catarina Demony, Andrei Khalip Organizations: Fedex, Thomson Locations: MADRID, United States, New York, Seattle, Zara, Inditex

SummaryCompanies Casino cut supermarket food prices by 10% on averagePARIS, July 27 (Reuters) - Cash-strapped retailer Casino (CASP.PA) swung to a loss of 233 million euros ($258.5 million) for the first half as falling sales and price cuts at its hypermarkets and supermarkets dented its core French business. The French retailer's group operating loss came after a profit of 166 million euros in the first half of 2022, with its operations in France posting a loss of 299 million euros. Consolidated group net sales fell 1.2% like for like in the second quarter to 5.5 billion euros, with retail sales in France down 4.2%. "We don't intend to go further," Lubek said when asked about possible further price cuts. Group net debt at end June-2023 was 6.1 billion euros against 6.0 billion at end June-2022.

Persons: Daniel Kretinsky, Jean, Charles Naouri, David Lubek, Lubek, France's, Dominique Vidalon, Kim Coghill Organizations: Casino, Finance, Consolidated, Thomson Locations: PARIS, French, France, Lincoln

July 26 (Reuters) - German sportswear retailer Puma (PUMG.DE) on Wednesday said second-quarter sales grew by 11%, slightly ahead of market expectations thanks to stronger revenues from Asia and Europe. "The macroeconomic environment and volatile retail demand remain challenging, particularly in North America and Europe, as recession risks weigh on consumer sentiment." Puma' sales came in at 2.12 billion euros ($2.34 billion) in the quarter, up from 2 billion a year earlier and above the 2.05 billion expected by analysts polled by Refinitiv Eikon. The company confirmed its full-year outlook for currency adjusted revenue growth in a high single-digit percentage rate, and an operating profit of between 590 million and 670 million euros. Operating earnings of 115 million euros for the quarter were down 21% from a year earlier but still above the 110 million expected by analysts.

Persons: Puma, Rihanna, Refinitiv Eikon, Linda Pasquini, Helen Reid, Milla Nissi, Jane Merriman Organizations: Puma, Super Team, Thomson Locations: Asia, Europe, North America, China, Frankfurt, Gdansk, London

Puma is likely to benefit less from the trend than Adidas because its terrace range doesn't have as much name recognition, said Adam Cochrane, analyst at Deutsche Bank. Investors will be pushing Puma and Adidas on broader strategies to navigate weak consumer demand at second-quarter results on July 26 and Aug. 3 respectively. Adidas, however, has got a big boost from selling some of its stock of discontinued Yeezy shoes. On Monday it slashed its expected 2023 operating loss to 450 million euros from 700 million euros, citing unexpectedly strong Yeezy sales. "However, the cost to compete for sportswear brands is very high, and barriers to entry are low, making retailers quite vulnerable to 'boom and bust' cycles as trends change," said Aubin.

Persons: Benoit Tessier, Adam Cochrane, it's, Robert Schramm, Fuchs, Janus Henderson, Bjorn Gulden, Edouard Aubin, Morgan Stanley, Aubin, Helen Reid, Linda Pasquini, Susan Fenton Organizations: Adidas, REUTERS, Puma, Nike U.S, Nike, Google, Deutsche Bank, Investors, Defamation, Thomson Locations: Lafayette, Paris, France, U.S, China, North America, London, Gdansk

[1/3] A man called David checks his phone as he stands near a fan to cool off, during a heatwave across Italy, in Rome, July 14, 2023. A heat wave has hit southern Europe during the peak summer tourist season, breaking records - including in Rome - and bringing warnings about an increased risk of deaths. Spain is expected to endure higher-than-average temperatures this summer, with two heatwaves already baking the country in June and July. Amazon Business, where companies can order supplies, saw more than a 20% increase in portable air-conditioning unit sales across Spain, Italy, and France this month compared to July last year. Smaller devices, like hand-held fans and fans worn around the neck, were also selling in their thousands.

Persons: David, Guglielmo Mangiapane, Angela Lonardo, Leroy Merlin, Elisa Anzolin, Corina Rodriguez, Helen Reid, Sharon Singleton Organizations: REUTERS, El, El Corte Inglés, Amazon Spain, Amazon, Thomson Locations: Italy, Rome, MADRID, MILAN, Southern Europe, Europe, United States, El Corte, Madrid, Spain, Seville, Sensibo, France, Corte, Milan, London

NEW YORK, July 23 (Reuters) - It is Barbie’s world, and U.S. small businesses hope their social-media marketing can help them cash in on it. But as Mattel-licensed Barbie marketing and products flood big companies' stores, hotel suites and social media posts, small firms also seek to capitalize on the hype. “Small businesses may look at the Barbie promotions and dream of that kind of budget and mass brand awareness,” said Brianne Fleming, an adjunct marketing instructor at University of Florida. MoonFire, an arts boutique based in Dallas, Texas, hosted a Barbie-themed collaboration in person with ten small businesses selling hot-pink, Barbie-inspired products. So, for small businesses, the strategy is to be a quick follower,” he said.

Persons: Barbie, “ Barbie, Inditex’s Zara, ”, Brianne Fleming, there's, Iris, Wilglory Tanjong, Kimberly Wagner, Ken, Mica Garbarino, “ Barbie ”, Walker Smith, Smith, “, gatekeepers, Josie Kao, Nick Zieminski Organizations: YORK, Google, Mattel, University of Florida, Monday, Kailyn, Thomson Locations: Malibu, Friday’s, Airbnb, Instagram, New York City, New York, Blue Curacao, grenadine, Dallas , Texas, Soho, Kailyn Rhone

☆ Global retailers cash in on Barbie movie craze
▼ + stars: | 2023-07-21 | by ( Helen Reid | Thomson Reuters | London-Based Reporter Covering The European Retail Sector Through A Global Lens. Focusing On Companies Including Adidas | ) www.reuters.com time to read: +3 min

REUTERS/Arriana McLymoreJuly 21 (Reuters) - Shoppers are snapping up Barbie hoop earrings, perfume, jumpsuits, and dresses as retailers seek to cash in on Friday's Barbie film release, reigniting the craze for the plastic doll and her hot pink, sequin-adorned universe. Mattel says the Barbie movie is expected to boost global sales of Barbie dolls, which declined last year from record growth during the pandemic. A Gap Barbie hoodie for women was available only in size XXS online, while a pair of Barbie Crocs, priced at $59.99 - $10 more than normal Crocs - was sold out on the Crocs website. Luggage brand Beis had a waiting list for all three sizes of suitcases in a Barbie pink, priced at a premium to its usual colour range. Walmart pitched Barbie dolls in varying skin tones and hairstyles at $45 to collectors.

Persons: browses, Arriana, Friday's, Barbie, Jo Ashdown, Ryan Gosling, Ken, Zara Barbie, hoodie, Barbie Crocs, Barbie toothbrushes, James Zahn, that's, Helen Reid, Savyata Mishra, Siddharth Cavale, Nick Zieminski Organizations: REUTERS, Mattel, WPP, Walmart, Hyatt Hotels, Hilton, Thomson Locations: Zara's Soho, New York City, U.S, Bogota, Colombia, Kuala Lumpur, Malaysia

Another 25% will come from "next-generation" materials in which the group is investing, and the remaining 10% from other sustainable sources, the company said. The new targets come as the European Commission is drawing up regulations to make clothing retailers pay for the waste they produce, arguing that fast-fashion companies "encourage customers to shop impulsively and incentivise purchasing larger quantities of clothes". Inditex previously had targets to use more sustainable cotton, linen, polyester, and fibres made from wood pulp, but did not have an overall goal for recycled fibres. Shoppers walk past a Zara clothes store, part of the Spanish group Inditex, in Las Palmas de Gran Canaria, Spain, December 13, 2022. REUTERS/Borja Suarez/File Photo"Moving forward on sustainability is natural for us," said Inditex Non-Executive Chair, Marta Ortega, in brief comments to investors at the AGM.

Persons: Inditex, Oscar Garcia Maceiras, Borja Suarez, Marta Ortega, Ortega, Adam Gofton, Corina Pons, David Latona, Helen Reid, Andrei Khalip, Mark Potter, Sharon Singleton Organizations: Companies Zara, European Commission, Las Palmas de, Las Palmas de Gran Canaria, REUTERS, Mackenzie Investments, Thomson Locations: MADRID, LONDON, Zara, Spanish, A Coruna, Spain, Las Palmas, Las Palmas de Gran, Toronto, Inditex, Madrid, London

☆ 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

STOCKHOLM, June 15 (Reuters) - H&M (HMb.ST) reported weaker than expected second quarter sales on Thursday as chilly weather held back demand in key markets, although the Swedish clothes group said June had started well and its shares rose by 3% in early trading. "Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group's large markets" H&M said. Zara owner Inditex (ITX.MC), whose largest market is warmer Spain, has a smaller share of sales in northern Europe and the U.S. and is also less affected by weather swings. Inditex, which has coped better than H&M in sluggish markets, last week said net sales in its quarter through April were up 13% and, in May, up 16%. H&M, whose single-biggest market is Germany, is due to publish its full quarterly earnings report on June 29.

Persons: Jefferies, Inditex, Richard Chamberlain, Marie Mannes, Anna Ringstrom, Terje Solsvik, Alexander Smith Organizations: Reuters, Royal Bank of Canada, Thomson Locations: STOCKHOLM, Swedish, Europe, Zara, Spain, U.S, Germany

☆ Fashion retailers resilient despite consumer fears
▼ + stars: | 2023-06-15 | by ( ) www.reuters.com time to read: +2 min

Shares in H&M gained 6% as analysts forecast a stronger third quarter after flat sales from March to May. Bank of America analysts said H&M's sold-out collaboration with luxury brand Mugler could also help boost half-year earnings expected on June 29. Despite sales falling, it said its focus on profit per order was paying off. The online retailer, bruised by shoppers' return to physical stores post-pandemic, has cut stock by 15% since the start of the year and said it was removing unprofitable brands from its platform. "While cracks are clearly visible in the U.S. consumer environment and to a lesser extent in Europe, Hugo Boss has been immune so far," Citi analysts said.

Persons: Sweden's, Inditex, M's, ASOS, Hugo Boss, Helen Reid, Marie Mannes, James Davey, Linda Pasquini, Sharon Singleton Organizations: Bank of America, Citi, Thomson Locations: U.S, Europe, China, Zara, London, Stockholm, Gdansk

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