Latest news with #SwedishKrona
Hans India
11 hours ago
- Business
- Hans India
H&M reports drop in quarterly net sales despite growth in local currencies
New Delhi: Swedish fashion giant H&M on Thursday posted weaker results for its quarter ending May 31 (Q2), with net sales falling to SEK (Swedish Krona) 56,714 million from SEK 59,605 million in the same period a year earlier. The decline was primarily due to currency translation effects, as a stronger Swedish krona impacted earnings despite a modest 1 per cent growth in sales in local currencies. According to H&M, the negative currency impact shaved off around 6 percentage points from reported net sales. The company also operated with 4 per cent fewer stores compared to the same period previous year. However, excluding those closures, local currency sales rose by 3 per cent. H&M's gross profit for the quarter stood at SEK 31,425 million, down from SEK 33,569 million previous year. The gross margin slipped to 55.4 per cent from 56.3 per cent. The company attributed this decline to higher purchasing costs, mainly driven by a stronger US dollar and increased freight charges. Investments in improving the customer experience also added to the cost pressure. However, the company expects these external cost factors to turn favourable in the second half of the year. Operating profit fell to SEK 5,914 million from SEK 7,098 million, reducing the operating margin to 10.4 per cent from 11.9 per cent. After-tax profit came in at SEK 3,962 million, compared to SEK 5,064 million in the same quarter previous year. Earnings per share declined to SEK 2.48 from SEK 3.15. Cash flow from operating activities also dropped, coming in at SEK 8,528 million versus SEK 12,600 million in the year-ago quarter. The company's cash and undrawn credit facilities stood at SEK 35,828 million, down from SEK 42,572 million. For the full half-year period (December 1, 2024 -- May 31, 2025), net sales in local currencies rose by 1 per cent, but again fell when converted to SEK -- dropping to SEK 112,047 million from SEK 113,274 million. The company's gross profit for the half-year came in at SEK 58,594 million, down from SEK 61,224 million, with the gross margin falling to 52.3 per cent from 54.0 per cent. The operating profit for the first six months declined to SEK 7,117 million, compared to SEK 9,175 million a year ago. The result after tax fell to SEK 4,541 million from SEK 6,295 million. Cash flow 0from operating profit stood at SEK 12,729 million, down from SEK 16,567 million. Looking ahead, H&M expects its sales in June 2025 to rise by 3 per cent in local currencies, though the company noted that calendar differences will slightly reduce this growth. In a positive development, environmental group rated H&M as the top company in the fashion sector for its efforts to reduce fossil fuel use. The company is also preparing to enter the Brazilian market, with new stores and online operations set to launch in the second half of 2025. Meanwhile, the board has decided to buy back up to 1.1 million of its own class B shares, for a maximum total of SEK 175 million. This buyback aims to support the company's long-term incentive program and adjust its capital structure. CEO Daniel Erver said that H&M's ongoing focus on its product range, shopping experience, and brand continues to show results. He added that improvements in online sales, womenswear, and the H&M Move segment, combined with cost control, will support profitable growth going forward.
Yahoo
16-05-2025
- Business
- Yahoo
Rottneros AB (LTS:0H0L) Q1 2025 Earnings Call Highlights: Navigating Market Challenges with ...
Release Date: May 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rottneros AB (LTS:0H0L) achieved stable production despite a turbulent market environment. The company is engaged in constructive negotiations with unions to adjust production capacity and reduce costs by 35 to 40 million Swedish Krona annually. There is a strong demand for UKP and ECF grades, particularly in the European market. Rottneros AB (LTS:0H0L) has completed significant investments, totaling 460 million Swedish Krona, which are now operational and meeting performance targets. The company is expanding into the packaging area with new machine lines in Sunna and Poland, enhancing its product offerings. Rottneros AB (LTS:0H0L) issued a profit warning due to high raw material costs and pressure on mechanical pulp prices. The company's EBIT of 62 million Swedish Krona for the quarter was below expectations, impacted by exchange rate losses and rising wood costs. There is a notable decline in demand for mechanical pulp, particularly in export markets affected by subsidized capacity from China. Inflation and increased personnel costs are contributing to higher fixed costs, squeezing margins. Working capital has increased significantly over the last four quarters, driven by higher wood costs and increased stock valuation. Warning! GuruFocus has detected 5 Warning Signs with LTS:0H0L. Q: Despite higher MBSK prices, net turnover fell due to lower sales volumes. What are the key reasons behind the weaker demand and how do you plan to recover volumes going forward? A: The weaker demand is more due to an imbalance from 2024 when we had weak production. We are now focusing on activating all sales channels to ramp up sales in line with stable production levels. We expect good demand from customers and plan to reduce stocks, freeing up working capital. Q: EBIT dropped to minus 62 million largely due to exchange rate losses, rising wood costs, and higher fixed costs. Which of these factors do you see as temporary versus structural, and what is your timeline for a margin recovery? A: Exchange rates are difficult to categorize as temporary or structural. However, the wood supply market is shifting in favor of buyers, which may lead to more favorable prices. We aim to reduce fixed costs by 35 to 40 million per year starting this autumn. Q: Working capital has been increasing the last four quarters, an increase of 222 million. Why and what can you do to decrease working capital? A: The increase is due to higher stock levels and the rising cost of wood, which has doubled in the last three years. We are actively managing stock levels to ensure efficient customer service and raw material supply, which should help reduce working capital. Q: You mentioned that CTMP prices are now below variable costs in some markets. What are your short and long-term strategies for CTMP, and at what price levels would production become profitable again? A: Mechanical pulp, especially for carton board, has a market place despite current challenges. We are evaluating exchange rates, customer payment abilities, and supplier pricing to find the best path forward. We anticipate a rebound in the mechanical pulp market, enabling us to utilize our increased capacity. Q: Given the current earnings pressure, how are you prioritizing investments such as the solar park and the packaging project in Poland? Will future CapEx be scaled back to protect cash flow? A: We have completed major investments and are now conservative with new investments. We aim to capitalize on the benefits from past investments while limiting future expenditures to protect our balance sheet and cash flow. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
The Weekly Closeout: GameStop pays for CEO's security, layoffs at Mattel
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. It's been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we're still thinking about. From H&M's Q1 store closures to Michelle Obama and Steph Curry partnering on a sports hydration drink, here's our closeout for the week. Williams-Sonoma keeps it 500 Home retailer Williams-Sonoma on Monday announced the company's inclusion in the S&P 500. 'Being included in the S&P 500 is a significant milestone that acknowledges the power of our brand portfolio and growth strategies,' CEO Laura Alber said in a statement. 'We remain committed to driving innovation, delivering exceptional products and experiences to our customers, and creating long-term value for our stakeholders.' The company's portfolio includes its namesake brand, Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Rejuvenation, Mark & Graham and GreenRow. Weaker gross margin hurts H&M's profitability in Q1 H&M on Thursday reported first-quarter net sales increased 3% year over year to 55.3 billion Swedish Krona (about $5.5 billion). The company's profitability during Q1 was negatively impacted by weaker gross margin that was affected by increased markdowns, customer investments and external factors, according to an earnings announcement. Gross margin was 49.1% compared to 51.5% last year. CEO Daniel Ervér said it continued to 'optimise the store portfolio' through store closures, 40 net of which shuttered during the 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,' Ervér said in a statement. Sally Beauty partners with Uber Eats Sally Beauty entered the Uber Eats platform on Tuesday, making its products available for delivery nationwide. This is Uber Eats first national beauty partnership and, to honor it, customers can get half off purchases $50 or more through March 31. 'Being the first beauty retailer to partner with Uber Eats allows us to take convenience to the next level, further expanding our same-day delivery reach nationwide, making our quality products more accessible than ever before,' Natalie Lockhart, group vice president of strategy, customer insights and digital experience at Sally Beauty Holdings, said in a statement. Michelle Obama, Steph Curry partner to launch Plezi Hydration Plezi Nutrition, the company co-founded by former First Lady Michelle Obama, announced this week that it teamed up with NBA star Steph Curry to create a healthier sports hydration drink. "I'm excited to team up with Plezi to launch Plezii Hydration, a game-changing hydration beverage that I believe can make a real difference for anyone looking to perform at their best," Curry said in a statement. "We've created something with smart ingredients and unbeatable flavor, so people can fuel their bodies the right way. No nonsense, no shortcuts — because the next generation deserves better." Plezi said the beverage touts qualities like two-times the electrolytes, half the sugar, seven-times the potassium and less sodium compared to other sports drinks. The beverage comes in three flavors — lemon lime, tropical punch and orange mango twist — and is available in 16.9-ounce bottles for $2.29. The product is available nationwide on Amazon, as well as in California at Walmart, Albertsons, Safeway, Vons and Pavilions locations. 'At Plezi, we're always thinking about how we can change the game when it comes to nutrition," Obama said in a statement. 'We're excited to provide a delicious, healthier option for everyone who's trying to get active and stay hydrated." 7-Eleven reintroduces an April Fool's Day sweet treat 7-Eleven's Mystery Donut for April Fool's Day is returning for a limited time. The Bismark-style donut features an unknown flavor filling. Customers can take their guess at the Mystery Donut flavor at participating 7-Eleven, Speedway and Stripes locations from Tuesday through April 29. "Every April, we like to add a little mischief to our bakery offerings with the Mystery Donut as an unexpected twist that's all about surprising our customers in the spirit of April Fool's Day," Brandon Brown, senior vice president of Fresh Foods at 7-Eleven, said in a statement. "It may seem like a prank, but it's no joke!' $268,553 That's how much GameStop paid to provide executive security services for CEO Ryan Cohen for the fiscal year ending on Feb. 1. 'We believe these arrangements and costs are reasonable, appropriate, necessary and in the best interests of the company and its stockholders, as they enable Mr. Cohen to carry out his responsibilities,' the company wrote in a document filed with the U.S. Securities and Exchange Commission. GameStop doesn't consider the securities to be a personal benefit or compensation paid to Cohen. 120 That's how many employees Mattel will lay off at its headquarters, according to a March 17 notice filed in California in accordance with the Worker Adjustment and Retraining Notification Act. The permanent layoffs are effective on May 19. Mattel did not immediately respond to Retail Dive's requests for comment. The company said last year it was targeting $200 million in cost savings by 2026. Retailers face prolonged stretch of downbeat consumer sentiment The Conference Board said this week that its measure of consumer expectations for employment, business conditions and personal finance fell to its lowest point in 12 years and uncomfortably below the threshold that can signal a recession. Its measure of consumers' confidence in the economy fell for the fourth straight month. This tracks with other research, including last week's University of Michigan's monthly consumer survey, which one economist called 'a horrific report.' Much of the anxiety is fueled by the tariffs imposed by the Trump administration, which announced auto levies earlier this week. 'If there was a silver lining in [The Conference Board's] March report, it was that consumer perceptions of the labor market held steady relative to February,' Wells Fargo economists Tim Quinlan and Jeremiah Koh said in a research note this week. 'Even so, an overall theme of uncertainty is broadly setting in for the consumer, and the short term policy outlook does not portend an end to this uncertainty with new tariffs on the horizon in April.' Sign in to access your portfolio
