Fashion giant H&M predicts summer sales rebound after profits fall
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H&M yesterday posted a fall in profits which was smaller than feared — and it now predicts a sales rebound despite heavy discounting in the fashion industry.
Operating profits at the Swedish giant fell to £455million for the three months to the end of May.
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H&M posted a fall in profits that was smaller than feared
Analysts had expected a bigger dip, and the news helped H&M's shares jump seven per cent in Stockholm yesterday morning.
It came despite a slightly worse-than-forecast performance for sales, which edged just one per cent higher in the quarter.
H&M, the world's second-largest listed retailer, shut 153 stores in the year to May 31, leaving it with 4,166 globally. With the closures stripped out, it said sales rose by three per cent.
The clothes retailer now expects a three per cent sales jump this month, an improvement from the six per cent drop seen this time last year.
H&M said earnings were impacted by the higher costs of clothing due to a stronger dollar, as well as giving 'customers even more value for money'.
It is keeping a keen eye on changes and restrictions in global trade. Boss Daniel Erver said: 'In uncertain times, we monitor developments closely.
'Our plan, with its focus on the product offering, the shopping experience and the H&M brand, is confirmed by the progress we see in key parts of the business.'
SHELL DENIES BID FOR BP
SHELL has shut down speculation about a possible takeover of BP, confirming it has no plans to make an offer for its rival.
Reports earlier this week suggested the two energy giants were in early talks over a merger, with BP reportedly considering the approach.
But Shell told investors yesterday that it 'has not been actively considering making an offer for BP'.
It also denied making an approach to BP and insisted no talks have taken place with regards to a possible offer.
The statement added that Shell had 'no intention' of making an offer.
FUEL'S ERRAND
THE UK's largest bioethanol plant has warned it will shut down by mid-September without Government support for the industry.
Hull-based Vivergo Fuels, owned by Associated British Foods, says the UK-US trade deal removed tariffs on US ethanol imports, making it impossible to compete with subsidised US products.
The Government said it is in talks with Vivergo to find a solution.
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