Image: GABRIEL BOUYS (AFP)
The Swedish textile giant H&M made an operating profit in the first quarter of the year despite the reluctance of buyers. Operating profit rose from December to February to 725 million Swedish kronor (64.18 million euros) after 458 million kroner a year earlier, as the group announced on Thursday. Analysts polled by Refinitiv had expected a loss of 1.10 billion crowns. First-quarter sales were released in mid-March and missed most analysts’ expectations.
The consolidation of the second-hand platform Sellpy, which contributed around one billion crowns to the result, has now also helped, explained H&M. In addition, you get a better grip on the costs. “The external factors affecting purchasing costs continue to improve, work on the cost and efficiency program is in full swing and many of the changes we have addressed over the past few years are beginning to take hold,” said CEO Helena Helmersson.
However, the global number two is struggling with the competition: the Spanish Inditex, as the top dog, sets the tone in the market with its various brands and managed to lure buyers back into the stores after the corona pandemic. In addition, online textile retailers such as SHEIN and Temu, which rely on very cheap clothes and quickly produced collections, are expanding rapidly.
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