{"id":1960040,"date":"2023-06-29T07:54:01","date_gmt":"2023-06-29T11:54:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hm-shares-jump-11-as-summer-collection-boosts-profit\/"},"modified":"2023-06-29T07:57:55","modified_gmt":"2023-06-29T11:57:55","slug":"hm-shares-jump-11-as-summer-collection-boosts-profit","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hm-shares-jump-11-as-summer-collection-boosts-profit\/","title":{"rendered":"H&#038;M&#8217;s profit soars 11% on successful summer collection."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhm-shares-jump-11-as-summer-collection-boosts-profit%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1960040&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Marie Mannes<\/p>\n<p><strong>STOCKHOLM (Reuters) \u2013<\/strong> Fashion retailer H&#038;M\u2019s shares hit a 16-month high on Thursday after its second-quarter profit beat estimates as cost-cutting measures started to bear fruit and its summer collection benefited from warmer weather in Europe. <\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<h2>H&#038;M Aims to Boost Fashion Appeal<\/h2>\n<p>H&#038;M, which has lagged Zara owner Inditex, has sought to raise its fashion appeal and boost its higher-priced brands, targeting shoppers less vulnerable to the rising cost of living as fast-fashion giant Shein takes market share with less expensive clothes.<\/p>\n<p>Shares in the world\u2019s second-biggest fashion retailer jumped 11% to hit their highest level since February 2022. They were last trading at 174.7 Swedish crowns.<\/p>\n<p><h3>Strong Sales Despite Challenges<\/h3>\n<\/p>\n<p>H&#038;M increased sales in many markets despite a squeeze on consumers\u2019 spending ability and \u201cunfavourable\u201d weather, CEO Helena Helmersson said, adding that its summer collection had got off to a good start as temperatures rose across northern Europe.<\/p>\n<p>Sales from June 1-27 were up 10% from a year earlier, a good sign for the start of H&#038;M\u2019s third quarter. The H&#038;M womenswear collection, as well as strong performance from the Cos and Arket brands, drove the boost in sales, Helmersson said.<\/p>\n<p><strong>Profit Beats Expectations<\/strong><\/p>\n<p>The stronger-than<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hm-shares-jump-11-as-summer-collection-boosts-profit\/\" title=\"H&#038;M's profit soars 11% on successful summer collection.\">-expected profit helped investors digest<\/a> a weaker margin of 8.2% for the second quarter, down from 9.2% a year earlier. <\/p>\n<p>H&#038;M blamed high raw material and freight costs for the lower margin, but said these factors had \u201cpivoted from being negative to being positive\u201d, indicating easing inflationary pressure.<\/p>\n<p>\u201cOf course that comes with an opportunity to adjust prices,\u201d Helmersson told Reuters in an interview.<\/p>\n<p><strong>Challenges in China<\/strong><\/p>\n<p>In China, where H&#038;M has been struggling, Helmersson stuck to the same message as earlier this year, saying the company is not yet at the level it wants to be, but things are moving in the right direction.  <\/p>\n<p><h3>Positive Inventory Surprise<\/h3>\n<\/p>\n<p>A sharp drop in inventory levels was a positive surprise, according to Cedric Rossi, next-gen consumer analyst at Bryan Garnier in Paris.<\/p>\n<p>\u201cI was really surprised to see that, without any higher promotional activity \u2013 because markdowns were in line with last year \u2013 H&#038;M decreased its inventory position,\u201d Rossi said. <\/p>\n<p>H&#038;M\u2019s inventory was at 16.7% of rolling 12-month sales on May 31, down from 19.2% a year earlier.  <\/p>\n<p>H&#038;M last year announced layoffs and other cost cuts that it said would help it reduce costs from the second half of 2023 onwards.<\/p>\n<p><strong>Positive Second Quarter Results<\/strong><\/p>\n<p>The cost cutting helped operating profit in the second quarter hit 4.74 billion Swedish crowns ($438.6 million), down from 4.98 billion a year earlier but well above the 4.07 billion forecast by analysts in a Refinitiv poll.<\/p>\n<p>H&#038;M, which closed a total of 303 stores across its brands in the year to May 31, said its new store openings would mainly be in \u201cgrowth markets\u201d while it would close stores mainly in established markets. <\/p>\n<p>($1 = 10.8084 Swedish crowns)<\/p>\n<\/p>\n<p> (Reporting by Marie Mannes in Stockholm and Helen Reid in London, editing by Mark Potter, Jason Neely and Emelia Sithole-Matarise)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/hm-shares-jump-11\/attachment\/hm-holds-a-news-conference-in-stockholm\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/hm-shares-jump-11\/attachment\/hm-holds-a-news-conference-in-stockholm-2\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/hm-shares-jump-11\/attachment\/people-walk-past-hm-shop-in-riga\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>National Political Correspondent Neil W. McCabe interviewed conservative political consultant Jason Cole, the CEO of Arsenal Media Group, about the 2024 congressional elections, and Cole gave him the list of the Top 10 most vulnerable House Democrats.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Shocking new studies from the CDC reveal patients are hundreds of times more likely to have <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-falsely-claims-jan-6-rioters-killed-two-police-officers-in-speech-at-alma-mater\/\" title=\"Biden Falsely Claims Jan. 6 Rioters \u2018Killed Two Police Officers\u2019 In Speech At Alma Mater\">fatal heart attacks<\/a> after receiving the COVID vaccines.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>The White House is blaming the removal of reporter Simon Ateba and Press Secretary Karine Jeane-Pierre\u2019s interaction on YouTube on a \u201ctechnical glitch.\u201d<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Daniel McAdams, the executive director at the Ron Paul Institute for Peace and Prosperity joined One America\u2019s Stella Escobedo to talk but the analysis of what happened in Russia with Wagner and the future of the Ukraine conflict.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) -Chinese food delivery giant Meituan said on Thursday that it is <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-antitrust-regulator-plans-to-target-amazons-online-marketplace-bloomberg-news\/\" title=\"US antitrust regulator to focus on Amazon's online marketplace - Bloomberg\">acquiring artificial intelligence<\/a> (AI) company Light Year from its co-founder\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) \u2013 Australia\u2019s Medibank Private Ltd said on Thursday it was facing a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/apple-seeks-to-fend-off-eu-antitrust-charge-triggered-by-spotify-at-hearing\/\" title=\"Apple fights EU antitrust charge over Spotify complaint at hearing.\">fourth shareholder class-action lawsuit<\/a> over a cyberattack incident last\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Katie Paul NEW YORK (Reuters) \u2013 Meta Platforms\u2019 Oversight Board on Thursday called for the suspension of Cambodian Prime Minister Hun\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Gus Trompiz PARIS (Reuters) -French minerals group Imerys on Thursday announced plans to mine lithium in the UK and said the\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fashion retailer H&amp;M&#8217;s shares surged to a 16-month high as its second-quarter profit exceeded expectations. The company&#8217;s cost-cutting efforts paid off, and its summer collection thrived due to favorable weather in Europe. H&amp;M aims to enhance its fashion appeal to catch up with competitor Inditex, the owner of Zara.<\/p>\n","protected":false},"author":66,"featured_media":1960041,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1960040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1960040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1960040"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1960040\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1960041"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1960040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1960040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1960040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}