Latest news with #DanielErver
The Independent
27-03-2025
- Business
- The Independent
H&M sales miss forecasts after shutting shops
Retailer H&M has revealed weaker-than-expected sales as it was impacted by recent store closures. The Swedish fashion giant also posted a drop in profits for the latest quarter, driven by higher markdowns and heavy investments to win over customers. H&M revealed on Thursday that net sales were up 2% to 55.3 billion over the three months to February 28, compared with the previous year. It added that this slowed down to 1% this month amid continued pressure on consumer finances. Sales growth was also knocked by H&M's plans to trim its store estate and help simplify its operations over the past year. H&M said it had 40 net store closures over the quarter, including 35 for the eponymous H&M brand while it also closed five Monki shops. Its recent store overhaul left the retailer with 4,213 stores at the end of last month – a reduction of 125 over the past year. The group, which also owns the Cos and & Other Stories brands, reported that gross profit for the quarter dipped slightly to £27.2 billion from £27.7 billion. Daniel Erver, chief executive of the business, said: 'Profitability in the quarter was negatively impacted by a weaker gross margin, which in turn was affected by negative external factors, increased markdowns and investments in the customer offering. 'We estimate that the overall negative effect of these will already be significantly smaller in the second quarter than in the first quarter. 'Although we have made important progress in our plan and have good cost control, our sales and earnings in the quarter were somewhat weaker than planned – but the first quarter is the smallest quarter of the year for us in terms of sales and margin, and we are confident going forward.' The boss added that moves to improve its assortment of female clothing were 'starting to have a positive effect' in the latest quarter.
Asharq Al-Awsat
27-03-2025
- Business
- Asharq Al-Awsat
H&M First-quarter Sales Weaker Than Expected
Swedish fast-fashion retailer H&M reported weaker than expected sales for its first quarter on Thursday and said sales were up 1% so far in March, in a sign of a slow start to its spring and summer season. H&M reported sales of 55.3 billion Swedish crowns ($5.52 billion) for the December to February quarter, missing analysts' mean estimate of 55.9 billion Swedish crowns, Reuters said. "Our sales and earnings in the quarter were somewhat weaker than planned – but the first quarter is the smallest quarter of the year for us in terms of sales and margin, and we are confident going forward," CEO Daniel Erver said in a statement. Increased discounting and marketing investments impacted H&M's profitability in the quarter, the company said, with the operating profit margin falling to 2.2% from 3.9% in the same period a year ago. Erver, leading H&M for just over a year, is trying to turn its fortunes around and has ramped up marketing, spending on pop stars like Charli XCX to model its collections as he tries to make the brand more desirable and better compete against Zara and Shein.
Yahoo
27-03-2025
- Business
- Yahoo
H&M Profit Disappoints on Steep Discounts and Strong Krona
(Bloomberg) -- Hennes & Mauritz AB posted weaker-than-expected profit in its first quarter, hit by the strengthening of the Swedish krona and an increased discounting of its clothes. Shares tumbled. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes The fast retailer's operating profit of 1.2 billion Swedish kronor ($120 million) in the three months to Feb. 28 was much lower than the 1.9 billion kronor analysts had expected. The trend is continuing in the current quarter, with the company weighed down by excess stock levels and higher purchasing costs. Net sales reached 55.3 billion, below the 55.8 billion kronor analysts had expected. Although H&M is making 'important progress' in its turnaround, sales and earnings in the quarter were 'somewhat weaker than planned,' the company said Thursday. Chief Executive Officer Daniel Erver, a company-veteran who took the top job in January last year, has struggled to revive top-line growth and rebuild faith in the Swedish retailer's midterm growth target for earnings before interest and taxes of 10%. The latest quarter shows that his efforts to claw out of the company's troubles through higher marketing spending has not brought the sustainable sales boost analysts had hoped for. H&M shares fell as much as 5.1% in early trading in Stockholm, the biggest intraday drop since March 12. The weaker results at H&M came as Next Plc raised its profit guidance for the current fiscal year on Thursday, after topping £1 billion of profit last year. The UK clothing and homewares retailer said the company is growing on many fronts, with sales at home and overseas rising and its Total Platform, where it sells third-party brands online, also showing good growth. Next shares rose as much as 9% in early trading in London. Earlier this month, rival Inditex — the owner of sector-darling Zara — reported a disappointing start to the year, feeling the impact of cuts in consumer spending amid a slowdown in large parts of the global economy. The world's largest listed clothing retailer saw its share plunge on the report. H&M, controlled by Sweden's Persson family, said its preliminary sales figure for March shows an increase of 1% in local currencies compared to the same month the previous year. The company said the negative effect of external factors, increased markdowns and investments in customer offerings is estimated to be significantly smaller in the second quarter than in the first. Business Schools Are Back Google Is Searching for an Answer to ChatGPT A New 'China Shock' Is Destroying Jobs Around the World The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P. Sign in to access your portfolio
Reuters
30-01-2025
- Business
- Reuters
H&M must raise the bar to counter fierce fast-fashion competition, says CEO
STOCKHOLM, Jan 30 (Reuters) - H&M cannot win on price alone and must make its clothes more trendy and of higher-quality in the fiercely competitive fast-fashion sector, its CEO Daniel Erver told Reuters. In his first year as CEO, Erver has spearheaded investments in marketing to boost the H&M ( opens new tab brand's appeal, as well as a push to speed up product development as the retailer tries to regain market share from rivals like Inditex-owned Zara. H&M must keep improving its products in terms of quality and trendiness in order to give customers value for money, Erver said in an interview on Thursday after the Swedish company's fourth-quarter sales missed expectations. "Just competing on lowest price will not cut it for us, we need to step up and raise the bar," Erver said. Online-only retailer Shein has undercut H&M and Zara with ultra-low prices for dresses, tops, jeans and accessories, forcing them to find new ways of differentiating themselves. H&M will keep investing in social media influencers and collaborations with pop stars like Charli XCX, Erver said, to reach more fashion-conscious young women. "To start accelerating the work of gaining market share and ... positioning ourselves, it's been really important to win the fashion-interested female customer, and especially the young generation, because she will shape the industry for the future," Erver said. As well as increasing its reach through social media, drawing more customers through its doors is key for H&M, which has been cutting its overall store count but refurbishing some in key cities. H&M's premium Arket brand is opening its first stores in Austria, Norway, Greece and Ireland this year. These will include cafés, as part of a push to get shoppers to linger for longer. While not satisfied with the overall performance, Erver said H&M's higher fourth quarter operating profit margin was partly thanks to a stronger product mix. H&M's chief financial officer, in a separate interview on Thursday, said changes it is making to shorten its supply chain and speed up its design process could cut the time between product idea and arrival in-store by as much as 50%.
The Independent
30-01-2025
- Business
- The Independent
H&M sales miss expectations amid Red Sea delays and late Black Friday
Fashion chain H&M has revealed weaker-than-expected sales for the past year after it was impacted by Red Sea shipping delays and the late timing of Black Friday. However, the Swedish retail giant said sales growth improved in December and January as it started a new financial year. Daniel Erver, who was appointed as the Hennes & Mauritz boss last January, said he is confident the group is 'on the right track'. The company reported that sales grew by 3%, in local currency, to 62.2 billion Swedish krona (£4.5 billion) over the quarter to the end of November. This was below the roughly 63.5 billion Swedish krona (£4.6 billion) forecast by analysts. Shares in the company dipped in early trading as a result. H&M said it built up more stock over the period as it faced longer transport times due to continued disruption. Net sales across the group were up 1% to 234.5 billion Swedish krona (£17.1 billion) for the year to November. The company said it opened 88 stores over the year. H&M added that group sales increased by 4% over the two months to January 28 as demand accelerated. Bosses at the business have overseen a shake-up in recent months which included the closure of stores under its Monki brand as it sought to streamline its operations. Mr Erver added: 'During 2024, we made significant improvements. 'Our priority was the H&M product offering, with an initial focus on womenswear, where we increased our trend responsiveness and overall assortment relevance. 'In the fourth quarter, full price selling of womenswear increased in all channels. 'We accelerated the pace of improvements to our supply chain, increasing flexibility and product availability across channels.'
