HMB profits, Q2 FY25

Swedish clothing giant H & M On Thursday, he referred to the high demand for the start of the summer season, sending the shares up.

The world’s second largest clothing retail merchant said that sales in June were seen 3 % in local currencies after a slow start for this year.

The shares increased by 6.4 % by 8:40 am London time.

However, the company, which also includes its commercial brands, COS, Arket and Weekday, noticed a sense of caution among consumers in the “current underestimation times”, noting that shoppers are “particularly sensitive to prices”.

No specific details about the impact of the American commercial tariffs were provided, but he said it was “closely monitoring developments” and given the high prices to compensate for added costs.

“We have started to see some competitors increase the prices, and this is something we are looking for, of course, to ensure that we stay competitors,” said Daniel Erfar, CEO during the profit call.

H&M is the United States, its second largest market, and depends great dependence on production in Asia, most notably China and Bangladesh.

“The United States is an important market for us and it will remain so,” said Erver.

The company added in a statement accompanying the results: “With good flexibility in the supply chain and through the pricing of the customer, there are opportunities to adapt businesses to change the conditions.”

It comes at a time when H&M was published weaker sales than expected in the second quarter of the financial.

Revenue in retail stores on an annual basis decreased to 56.71 billion Swedish Kruna ($ 5.99 billion) in a three -month period until May. 31, slightly less than the Swedish Krona predictions 57.01 billion by LSEG analysts. In local currencies, sales rose 1 %.

The total operating profit reached 5.9 billion Swedish chips over the quarter, in line with expectations, but a decrease on an annual basis.

The company said that the quarter results were “negatively affected” by the high purchase rates from the most expensive US dollar and the high shipping costs.

“The negative external factors that have increased the purchase costs for the first half of the year turn into a positive for the second half of the year,” Erver said in a statement.

The 20025 stores were closed for the year 2025, in the first known markets, and 80 new opening of the store, to a large extent in growth markets.

I have already informed the retailer of fashion a Slow start for this yearBut indicated an annual sales rise in March.

H&M faced several four -fourths of soft sales, as it struggled to the diet of the wider gap with Endex’s Zara competitor And extend the increasing competition from low -cost retailers, such as Shin and Timo.

However, the American definitions and the weak confidence of consumers became a traction for the retail sector on a broader scale, with the publication of Inditex earlier this month. Weaker than expected quarterly sales And a slower start to the summer amid the wide economic uncertainty.

The retail and consumer commodity trade has emerged as the most veiled sector in Europe, according to a new report issued by the Weil and Gotshal & Manges LLP, which indicated narrow credit conditions, enlarged costs and weaker demand for consumers between the pressure on the industry.

This is a developing story and will be updated soon.