Latest news with #GretaRosenFondahn
Yahoo
12 hours ago
- Business
- Yahoo
H&M seeks to lure US shoppers as fast-fashion rivals hike prices due to tariffs
By Helen Reid and Greta Rosen Fondahn LONDON/STOCKHOLM (Reuters) -H&M is trying to win shoppers from rivals in the United States by holding prices steady while Zara and Shein raise theirs, as U.S. tariffs disrupt the fast-fashion industry that relies on imports of low-cost clothes from China, Vietnam, and other Asian countries. H&M CEO Daniel Erver said on Thursday constantly changing tariffs had created turbulence, with the world's second-largest listed fashion retailer planning for multiple scenarios. In an interview, he told Reuters that the challenge in the coming months is "to understand the consumer sentiment, which we see has dropped in the U.S. due to all the turbulence... with the fact that some will be forced to raise prices more, and what (that creates) as an opportunity". "Different competitors are acting in different ways, some more aggressively, some more cautiously," he added. H&M has around 500 stores across the U.S., its second-largest market after Germany in terms of sales, accounting for 13% in 2024. As U.S. tariffs add to costs for retailers, relative price positioning is front of mind for executives, and the timing of price increases is key, with companies watching the competition closely to see who will blink first. For H&M, which is trying to improve its profitability, sticking to current prices for longer carries risks as rising costs eat into margins. But it also provides an opportunity to take market share from rivals. "Maybe they are going to raise prices in the U.S... but just to a lesser extent as compared to competitors," Pareto Securities analyst Alexander Siljestrom said. H&M can also mitigate the tariff impact by shifting production of U.S.-bound clothes from China, which faces the highest tariff rate, to Bangladesh and elsewhere, he said. Across categories including dresses, jeans, and shirts, the average U.S. price at H&M's bigger competitor Zara was up by 28% this month from a year ago, according to data from price tracking firm EDITED, while prices at H&M in the U.S. were on average down 3% year-on-year. Zara prices were up across the board in June compared to January this year, EDITED found, while H&M has kept prices more or less stable, even though its chief financial officer Adam Karlsson said in March that price hikes were likely to offset tariffs. Shein, which sends clothes direct to U.S. shoppers from factories in China, has also had to raise prices and suffered weaker customer growth since Trump ended the "de minimis" duty-free treatment of low-value parcels. SOURCING FROM FEWER, CLOSER SUPPLIERS As it aims to improve its supply chain and get new styles to stores faster, H&M has spent the last 18 months consolidating its supplier base, Erver said, aiming to order more from a smaller number of big suppliers who also operate factories in multiple countries. "We look at each individual order to decide what's the best sourcing market depending on the craftsmanship, the skills, the pricing situation, but also now more than ever the geopolitical situation with trade barriers," he told Reuters. "That has led us in certain cases to take the decision to move things to different markets." H&M also aims to be below full capacity with all of its suppliers, so it can easily increase production if needed when an item sells well, Erver said. As part of its "nearshoring" strategy of sourcing products from suppliers closer to main consumer hubs, H&M is looking to increase its supplier base in markets like Turkey, Egypt, Jordan, and Morocco for Europe, Erver said. H&M will also add suppliers in Brazil, where it is opening its first stores in the second half, he added.
Yahoo
12 hours ago
- Business
- Yahoo
H&M seeks to lure US shoppers as fast-fashion rivals hike prices due to tariffs
By Helen Reid and Greta Rosen Fondahn LONDON/STOCKHOLM (Reuters) -H&M is trying to win shoppers from rivals in the United States by holding prices steady while Zara and Shein raise theirs, as U.S. tariffs disrupt the fast-fashion industry that relies on imports of low-cost clothes from China, Vietnam, and other Asian countries. H&M CEO Daniel Erver said on Thursday constantly changing tariffs had created turbulence, with the world's second-largest listed fashion retailer planning for multiple scenarios. In an interview, he told Reuters that the challenge in the coming months is "to understand the consumer sentiment, which we see has dropped in the U.S. due to all the turbulence... with the fact that some will be forced to raise prices more, and what (that creates) as an opportunity". "Different competitors are acting in different ways, some more aggressively, some more cautiously," he added. H&M has around 500 stores across the U.S., its second-largest market after Germany in terms of sales, accounting for 13% in 2024. As U.S. tariffs add to costs for retailers, relative price positioning is front of mind for executives, and the timing of price increases is key, with companies watching the competition closely to see who will blink first. For H&M, which is trying to improve its profitability, sticking to current prices for longer carries risks as rising costs eat into margins. But it also provides an opportunity to take market share from rivals. "Maybe they are going to raise prices in the U.S... but just to a lesser extent as compared to competitors," Pareto Securities analyst Alexander Siljestrom said. H&M can also mitigate the tariff impact by shifting production of U.S.-bound clothes from China, which faces the highest tariff rate, to Bangladesh and elsewhere, he said. Across categories including dresses, jeans, and shirts, the average U.S. price at H&M's bigger competitor Zara was up by 28% this month from a year ago, according to data from price tracking firm EDITED, while prices at H&M in the U.S. were on average down 3% year-on-year. Zara prices were up across the board in June compared to January this year, EDITED found, while H&M has kept prices more or less stable, even though its chief financial officer Adam Karlsson said in March that price hikes were likely to offset tariffs. Shein, which sends clothes direct to U.S. shoppers from factories in China, has also had to raise prices and suffered weaker customer growth since Trump ended the "de minimis" duty-free treatment of low-value parcels. SOURCING FROM FEWER, CLOSER SUPPLIERS As it aims to improve its supply chain and get new styles to stores faster, H&M has spent the last 18 months consolidating its supplier base, Erver said, aiming to order more from a smaller number of big suppliers who also operate factories in multiple countries. "We look at each individual order to decide what's the best sourcing market depending on the craftsmanship, the skills, the pricing situation, but also now more than ever the geopolitical situation with trade barriers," he told Reuters. "That has led us in certain cases to take the decision to move things to different markets." H&M also aims to be below full capacity with all of its suppliers, so it can easily increase production if needed when an item sells well, Erver said. As part of its "nearshoring" strategy of sourcing products from suppliers closer to main consumer hubs, H&M is looking to increase its supplier base in markets like Turkey, Egypt, Jordan, and Morocco for Europe, Erver said. H&M will also add suppliers in Brazil, where it is opening its first stores in the second half, he added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Automotive
- Yahoo
European car sales rise in March, Tesla drops 28.2%
By Greta Rosen Fondahn and Alessandro Parodi (Reuters) - Tesla's new car sales in Europe dropped 28.2% in March from a year earlier, even as overall battery electric vehicle sales rose 23.6% in the month, according to data from the European Automobile Manufacturers Association (ACEA). Total new car sales in Europe rose 2.8% in the month, boosted by double-digit jumps in Britain and Spain, as EV gains offset a fall for petrol and diesel cars, the data showed. WHY IT'S IMPORTANT Tesla's sales drop in Europe adds to signs that drivers are shunning Elon Musk's electric car brand as competition from China stiffens and some protest against his political views. European carmakers are also fighting competition from China, while battling to bring down high costs in home markets and now grappling with the effects of U.S. President Donald Trump's 25% tariffs on auto imports, clouding the outlook for the industry. Trump's 145% import taxes on Chinese imports - and Beijing's retaliatory tariffs - have also pushed global growth forecasts lower, raising new risks for automotive companies. BY THE NUMBERS March sales in the European Union, Britain and the European Free Trade Association rose to 1.42 million cars, after falling for two months, the ACEA data showed. Registrations at Volkswagen and Renault increased by 10.3% and 13.0% respectively, while they fell by 5.9% at Stellantis. Tesla's sales fell for a third month, down 28.2% year-on-year, and its share of the total market declined to 2% from 2.9% a year ago. In the EU, total car sales fell 0.2% year-on-year, declining for a third month even as registrations of battery electric (BEV), hybrid electric (HEV) and plug-in hybrid (PHEV) cars increased by 17.1%, 23.9% and 12.4% respectively. Electrified vehicles - BEV, HEV or PHEV - sold in the bloc accounted for 59.2% of passenger car registrations in March, up from 49.1% in the previous year. Among the largest EU markets, sales in Spain and Italy increased by 23.2% and 6.3% respectively, while in France and Germany they dropped by 14.5% and 3.9%. In Britain, registrations were up 12.4%. CONTEXT Market experts say a growing interest in electric cars in Europe, the world's second-biggest EV market, is largely due to new EU emission targets and the launch of cheaper electric models, although the EU has recently proposed loosening the targets. Sign in to access your portfolio
Yahoo
24-04-2025
- Automotive
- Yahoo
European car sales rise in March as EV gain offsets falling combustion engines
By Greta Rosen Fondahn and Alessandro Parodi (Reuters) -New car sales in Europe rose 2.8% in March, boosted by double digit jumps in Britain and Spain, as industry data on Thursday showed that an increase in registrations of electric vehicles in the month offset a fall in those of petrol and diesel cars. Sales of fully electric cars were up 23.6% in the month, data by the European Automobile Manufacturers Association (ACEA) showed. While battling to bring down high costs in home markets and fighting competition from China, European carmakers are now grappling with the effects of U.S. President Donald Trump's 25% tariffs on auto imports, clouding the outlook for the industry. Trump's 145% import taxes on Chinese imports - and Beijing's retaliatory tariffs - have also pushed global growth forecasts lower, confronting automotive companies with new risks. March sales in the European Union, Britain and the European Free Trade Association (EFTA) rose to 1.42 million cars, after falling for two months, the ACEA data showed. Registrations at Volkswagen and Renault grew by 10.3% and 13.0% respectively, while they fell by 5.9% at Stellantis. Tesla's sales fell for a third month, down 28.2% year-on-year, and its share of the total market declined to 2% from 2.9% a year ago. In the EU, total car sales fell 0.2% year-on-year, declining for a third month even as the registrations of battery electric (BEV), hybrid electric (HEV) and plug-in hybrid (PHEV) cars grew by 17.1%, 23.9% and 12.4% respectively. Electrified vehicles - either BEV, HEV or PHEV - sold in the bloc accounted for 59.2% of passenger car registrations in March, up from 49.1% in the previous year. Among the largest EU markets, sales in Spain and Italy increased by 23.2% and 6.3% respectively, while in France and Germany they dropped by 14.5% and 3.9%. In Britain, registrations were up 12.4%. Market experts say a growing interest in electric cars in Europe, the world's second-biggest EV market, is largely due to new EU emission targets and the launch of cheaper electric models, although the EU has recently proposed loosening the targets.
Yahoo
24-04-2025
- Automotive
- Yahoo
European car sales rise in March as EV gain offsets falling combustion engines
By Greta Rosen Fondahn and Alessandro Parodi (Reuters) -New car sales in Europe rose 2.8% in March, boosted by double digit jumps in Britain and Spain, as industry data on Thursday showed that an increase in registrations of electric vehicles in the month offset a fall in those of petrol and diesel cars. Sales of fully electric cars were up 23.6% in the month, data by the European Automobile Manufacturers Association (ACEA) showed. WHY IT'S IMPORTANT While battling to bring down high costs in home markets and fighting competition from China, European carmakers are now grappling with the effects of U.S. President Donald Trump's 25% tariffs on auto imports, clouding the outlook for the industry. Trump's 145% import taxes on Chinese imports - and Beijing's retaliatory tariffs - have also pushed global growth forecasts lower, confronting automotive companies with new risks. BY THE NUMBERS March sales in the European Union, Britain and the European Free Trade Association (EFTA) rose to 1.42 million cars, after falling for two months, the ACEA data showed. Registrations at Volkswagen and Renault grew by 10.3% and 13.0% respectively, while they fell by 5.9% at Stellantis. Tesla's sales fell for a third month, down 28.2% year-on-year, and its share of the total market declined to 2% from 2.9% a year ago. In the EU, total car sales fell 0.2% year-on-year, declining for a third month even as the registrations of battery electric (BEV), hybrid electric (HEV) and plug-in hybrid (PHEV) cars grew by 17.1%, 23.9% and 12.4% respectively. Electrified vehicles - either BEV, HEV or PHEV - sold in the bloc accounted for 59.2% of passenger car registrations in March, up from 49.1% in the previous year. Among the largest EU markets, sales in Spain and Italy increased by 23.2% and 6.3% respectively, while in France and Germany they dropped by 14.5% and 3.9%. In Britain, registrations were up 12.4%. CONTEXT Market experts say a growing interest in electric cars in Europe, the world's second-biggest EV market, is largely due to new EU emission targets and the launch of cheaper electric models, although the EU has recently proposed loosening the targets.
