US EditionH&M Says Shoppers Are Cautious as Sales Fall
- H&M reported a larger-than-expected drop in second-quarter sales and profit for the period ending May 31, 2025.
- The decline was driven by currency effects, higher purchasing costs from a stronger U.S. dollar, elevated freight expenses, and cautious consumer spending amid uncertain global trade conditions.
- Net sales fell nearly 5 percent year-on-year to 56.7 billion Swedish kronor, while operating profit dropped 16 percent to 5.91 billion kronor, with margins shrinking to 10.4 percent from 11.9 percent.
- CEO Daniel Erver acknowledged that while some initiatives take effect more quickly than others, the overall trajectory remains positive, highlighting the company’s efforts to stay flexible with its supply chain and adjust pricing accordingly.
- H&M expects sales in June to rise 3 percent in local currencies and sees positive signs for the second half as earlier cost pressures ease and improvements continue.
13 Articles
13 Articles
H&M says shoppers are cautious as Q2 sales fall more than expected
STOCKHOLM (Reuters) -Swedish fashion retailer H&M reported on Thursday a slightly bigger drop than expected in second-quarter sales and said it expected sales in June, measured in local currencies, to rise 3%. CEO Daniel Erver said in a statement that times are uncertain, with cautious consumers. Retailers are navigating Trump’s rapidly shifting tariff announcements as concerns grow about resurgent inflation and a global economic slowdown, which…
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H&M said it was considering price rises to offset the impact of tariffs and “remain competitive.” The world’s second-largest clothing retailer posted weaker-than-expected sales in the fiscal second quarter but pointed to an uptick in summer demand. The retail giant has faced several consecutive quarters of soft sales, as it has struggled to close a widening gap with rivals Inditex, Shein and Temu. Swedish clothing giant H&M on Thursday pointed t…
H&M's Mixed Signals: Summer Uptick Masks Deeper Retail Challenges
Early Summer Momentum Provides Brief Respite Swedish fashion retailer H&M delivered a rare piece of encouraging news this week, reporting a 3% increase in June sales measured in local currencies. This uptick provided much-needed relief for investors, driving shares up 4.4% during Thursday trading in London. The summer sales boost represents a notable shift from the sluggish performance that characterized the retailer’s first half of 2025. Howeve…
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