H&M’s net profits fell in Q1 but the drop wasn’t as big as analysts had been predicting and with its sales rising during the period and other good news, the general consensus was that it's managing its turnaround well.
H&M’s latest board appointment underscores the importance of digital to mass-market fashion retailers with the company proposing Danica Kragic Jensfelt to be elected at its annual general meeting on May 7.
H&M profit may have fallen in its latest period as its logistics issues continued to eat into the bottom line, but the group's sales are heading in the right direction and it's also selling more at full price.
Logistics issues may have been a problem for H&M in the US, France, Italy and Belgium in Q3 but the quarter was mainly about good news as online surged, AI and analytics tech delivered, and sales recovered.
At a spruced-up pilot store in H&M's home town of Stockholm, the chain founded in 1947 is testing new concepts that mark a break with its past, and partly echo some tactics already deployed by rivals to attract shoppers.
H&M is upbeat despite a tough six months, saying it's on the right path, is improving the product mix, seeing good results from new launches and scaling up tech developments that offer future profit potential.
Trading statements and results announcement are being closely watched at present as some global markets prove to be tough for fashion chains. So H&M was in the spotlight on Friday as it reported Q2 sales up 2%.