A close-up supervision of the illuminated Red H&M logo in front of an exhibition of summer dresses and casual clothes in a retail store.
Cheng Xin | Getty Images News | Getty pictures
The Swedish clothing giant H&M pointed out an increase in demand on Thursday to start the summer season and send the shares higher.
The second largest clothing dealer in the world said that sales in June had increased by 3% in local currencies after a slow start to the year.
The stocks rose by 7.2%at 9:05 a.m. London.
The company, whose brands also include COS, Arket and weekday, nevertheless noticed a feeling of caution among consumers in current “uncertain times”, and found that buyers were “particularly sensitive”.
It did not provide any specific details on the effects of US trade tariffs, but said that it “carefully monitored the developments” and considered the price increases to compensate for additional costs.
“We start to see some competitors who increase prices, and this is something we are looking for, of course, to ensure that we remain competitive,” said CEO Daniel Erver during a win.
H&M counts the United States as the second largest internal market and depends heavily on production in Asia, especially in China and Bangladesh.
“The United States is an important market for us and will continue to be,” said Erver, noting that the effects of tariffs would become clearer in July as soon as the 90-day break has expired.
“With good flexibility in the supply chain and the pricing of the customer offer, there is the possibility to adapt the business to changed conditions,” added the company in a statement that accompanied the results.
It comes when H&M achieved weaker than expected sales in the second quarter.
The revenue in the retailer rely on 56.71 billion Swedish crown ($ 5.99 billion) compared to the previous year. 31, somewhat below the 57.01 billion Swedish Krona forecasts by LSEG analysts. In local currencies, sales increased by 1%.
As part of the quarter, the operating profit was 5.9 billion Swedish Krona in accordance with expectations, but compared to the previous year.
The company said that the results of the quarter were “negatively influenced” by higher purchase prices by a more expensive US dollar and higher freight costs.
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“The negative external factors that increased the purchase costs for the first half of the year are positive for the second half of the year,” said Erver in a statement.
In addition, 200 business lovers were planned for 2025, mainly in established markets, and 80 new business openings, mainly in the growth markets.
The fashion retailer previously reported a slow start to the year, but pointed out an annual increase in sales in March.
H&M confronted itself with several consecutive quarters of soft sales rollers, since it has tried to close an extended gap with the rival Zara in Inditex ownership and to ward off increased competition from lower retailers such as Shein and Temu.
US tariffs and weak consumer confidence have nevertheless become a resistance to the retail sector, with Inditex publishing weaker than expected quarterly sales at the beginning of this month and a slower start of summer in the middle of a broad economic uncertainty.
According to a new report by the law firm Weil, Gotshal & Mangs LLP, which was most released in Europe in Europe, in which close credit conditions, cost inflation and the weaker demand from consumers under pressure under pressure on the industry, according to a new report by the law firm.
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