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Tag: h&m

  • H&M’s profit falls in latest quarter

    H&M’s profit falls in latest quarter

    H&M’s profit fell 20 per cent in the last quarter as the Swedish fast-fashion retailer

    experienced reduced footfall in stores and increased competition.

    Net profit for the three months to end-August, the third quarter of the retailer’s financial year, came in at 3.84 billion kronor (US$469 million). Sales grew 4.6 per cent to 51.23 billion kronor.

    Despite the drop, which was in line with analysts’ forecasts, there was rapid and profitable growth of the retailer’s online sales, which in some established markets already account for 25 to 30 percent of total sales.

    “The fashion retail sector is growing and is in a period of extensive and rapid change as a result of ongoing digitalisation,” said Karl-Johan Persson, CEO, H&M.

    “The competitive landscape is being redrawn, new players are coming in and customers’ behaviour and expectations are changing, with an ever greater share of sales taking place online.”

    Persson said the shift to online was “clearly reflected” in H&M’s increasing online sales, however did not fully compensate for reduced footfall to stores in several of its established markets.

    “This is of course something that we are not satisfied with and which, among other things, resulted in that we entered the third quarter with inventory levels that were too high,” he said.

    “Through our aggressive summer sale we succeeded in improving the inventory position. This contributed to the autumn collections getting off to a good start, although sales slowed somewhat towards the end of September.”

    The fashion retailer is now looking to refine its store portfolio, with a raft of renegotiation, rebuilds, relocations and closures to take place.

    “Overall we will be closing around 90 stores during the year, resulting in a net addition of approximately 385 new stores,” said Persson.

    “We still see good potential for more physical stores primarily in many of our growth markets. In the year to date we have opened four new H&M store markets: Kazakhstan, Colombia, Iceland and most recently Vietnam. With Georgia which will open later this year.”

    H&M will be present in 69 markets.

    H&M said there had been a successful reception of its new brand, Arket, in London as well as online in 18 markets.

    “Creating and launching new brands is an important part of our growth strategy, and next year we plan to launch another new brand,” said Persson.

  • H&M reveals new store layouts

    H&M reveals new store layouts

    Swedish fashion retailer H&M will open two new stores in Queensland in the coming months, the company has announced.

    The H&M at Stockland Townsville will open on October 19, followed by the H&M store at Stockland Rockhampton on November 2. The two new stores will be the seventh and eighth H&M stores to open in Queensland.

    The two H&M stores will both be set over one large floor and each will span across approximately 2,500sqm.

    The stores will offer apparel, underwear and accessories for Men, Women, Kids and Baby with the Townsville store having the addition of the Home concept.

    “We are excited to be making further progress on our expansion in regional Queensland with the launch of our H&M stores at Stockland Townsville and Stockland Rockhampton,” said Hans Andersson, Australian country manager for H&M.

    “We look forward to meeting our H&M customers in both Northern and Central QLD and engaging them with our wide range of offers.”

    H&M entered the Australian market in 2014 and now has 22 stores nationwide.

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  • H&M Singapore offering Narelle Kheng collection

    H&M Singapore offering Narelle Kheng collection

    H&M Singapore is offering an exclusive collection in collaboration with actress/singer Narelle Kheng.

    The Swedish fast-fashion brand is known for partnering with celebrities, also tying up with Naomi Campbell for its Fall 2017 campaign. The collection is all about mixing power dressing with glitz and glamour, using sharp lines, statement pieces and sophisticated silhouettes. It includes oversized knits, high-waisted trousers, velvet tops and even a puffy jacket.

    Kheng’s picks accentuates her feminine yet edgy side with a dash of ’90s glam, says Nylon Singapore. Her “Selected by Narelle” collection and the Fall outfits will be available from tomorrow.

  • H&M cuts prices to shift leftover summer clothes

    H&M cuts prices to shift leftover summer clothes

    ‘The rapid shift from offline to online in the young value fashion market has been one factor behind disappointing sales trends in the past couple of years.’

    Budget fashion group H&M has slashed prices to shift unsold summerwear, in the latest sign the Swedish company is struggling to keep pace with rivals as young buyers move online.

    Seemingly unstoppable for decades, H&M has been hit by tougher competition in the past couple of years from cut-price brick-and-mortar rivals. It is also trying to improve its e-commerce offering to counter new online-only players.

    H&M entered its third quarter with higher-than-usual inventories that needed to be sold before autumn collections arrived. On top of that, overall demand has been sluggish in some of its key markets, such as Germany.

    “The rapid shift from offline to online in the young value fashion market has been one factor behind disappointing sales trends in the past couple of years,” said Societe Generale analyst Anne Critchlow, who has a “sell” rating on H&M’s shares.

    “In most countries, online is not yet integrated with the stores and free delivery and free returns are not available.”

    Sales at H&M, the world’s second-largest clothing retailer after Zara owner Inditex, reached 51.2 billion crowns ($6.4 billion) in its June-to-August financial quarter against a forecast 51.6 billion in a Reuters poll.

    Local-currency growth was 4 percent, just below forecast.

    H&M said the aggressive summer markdowns had led to an improved inventory position ahead of the fourth quarter and that autumn sales were off to a good start.

    H&M’s shares, which have tumbled from all-time highs near 370 crowns in 2015, were up 2.2 percent to 218.10 crowns at 1400 GMT.

    The company has launched several independent and mostly higher-end brands in recent years to broaden its customer base in the face of growing competition in its budget segment, but the core H&M chain still accounts for the bulk of its sales.

    H&M is also intensifying efforts to catch up with services offered by pure-online players such as Asos and Zalando as shopper behaviour and expectations transform even faster than H&M had expected.

    It is now testing “click-and-collect” – picking up items bought online in stores – in Britain, and rolling out faster delivery options and online returns in stores in some markets.

    RBC Capital Markets Richard Chamberlain with an “outperform” rating on H&M, said he expects sales and gross margin trends to improve next year helped by the online improvements. ($1 = 7.9924 Swedish crowns)

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  • Queue greets H&M Vietnam launch in HCMC

    Queue greets H&M Vietnam launch in HCMC

    Queues marked the official launch for H&M Vietnam, with more than 4000 customers on its first day in Vincom Center Dong Khoi, Ho Chi Minh City.

    It announced the opening a month ago on its Facebook page.

    The first 1000 customers at the Swedish fast-fashion brand’s new shop were each given a limited-edition bag, while other shoppers received shopping vouchers.

    H&M Southeast Asia CEO Fredrick Famm says the timing is right for the company to expand to Vietnam. “H&M has been researching and preparing for its Vietnam expansion for a long time.”

    Famm says H&M is looking for further locations in Vietnam.

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  • H&M launches Justin Bieber collection

    H&M launches Justin Bieber collection

    H&M is releasing a Justin Bieber collection hot on the heels of the pop star cancelling his Purpose World Tour, which was to have included a concert in Singapore next month.

    Drawing its inspiration from the tour’s merchandise, the line includes hoodies, joggers, sweaters and t-shirts. Features are a yellow Stadium hoodie, which Bieber wears himself, plus a tour t-shirt with his face on the front (as worn by Ellen DeGeneres).

    The Justin Bieber x H&M collection will be available online and in stores from Thursday next.

    The collection’s colours are black, red, grey, white and yellow.

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  • H&M’s new brand opens first stores in London and online

    H&M’s new brand opens first stores in London and online

    Swedish fashion retailer H&M’s new brand, Arket, has launched its online store and first physical store on Regent Street in London last Friday.

    According to the fast-fashion giant, the new brand is a modern-day market, offering essential products for men, women, children and the home. The brand’s online store caters to 18 European markets.

    The Regent Street store occupies two storeys of a former department-store corner building, with womenswear and the children’s collection located on the second floor, and menswear, homeware and an Arket cafe on the ground floor. The vegetarian cafe menu is based on the New Nordic Food Manifesto and blends traditional Scandinavian flavours with modern and global influences.

    “We are incredibly happy to introduce Arket and its collections, and welcome our first customers into our stores on Regent Street and online at arket.com,” said Lars Axelsson, managing director.

    “Our team has been working towards this day for over two years, and we are excited to finally share the results.”

    The new brand has accumulated over 28,000 followers on Instagram and 5000 on Facebook, ahead of the launch.

    Ulrika Bernhardtz, creative director, recently said they picked the name Arket,which means ‘sheet of paper’ in Swedish, because it relates to both their origin in the Nordic tradition of functional, long-lasting design and symbolises the blank sheet, “the sense of optimism and possibility they felt when creating the new brand.”

    The launch of the London store will be followed by the opening of Arket in Copenhagen on September 1, then by stores in Brussels, Munich and in London’s Covent Garden during the coming weeks and months.

    The Swedish fashion retailer will launch its first hometown store in Sweden at Biblioteksgatan 9, in the heart of Stockholm’s shopping district Bibliotekstan and will open in the spring of 2018.

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  • H&M Philippines opens in SM Mall of Asia

    H&M Philippines opens in SM Mall of Asia

    H&M Philippines opens its first SM Mall of Asia branch today, with plans to open two more stores in Metro Manila before the end of the year.

    The other outlets for the Swedish fast-fashion giant will be at Greenbelt 4 in Makati City, and Robinsons Galleria in Ortigas, taking the company’s total to 29 stores nationwide.

    “We have more than 700 colleagues working in the stores, distribution center and support office,” says H&M Philippines communications chief Dan Mejia.

    H&M Philippines last year generated about PHP5.38 billion (US$107 million) in sales from 21 stores – an increase of more than 50 per cent over the PHP3.45 billion from 15 stores in 2015.

    Mejia says the retailer will also launch an online shop this year.

    At the end of last year, H&M had 4351 stores in 64 markets.

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  • H&M continues New Zealand expansion

    H&M continues New Zealand expansion

    Swedish fast fashion chain, Hennes & Mauritz AB (H&M), has confirmed its second store in New Zealand will open on September 9.

    Located at The Crossing in Christchurch’s CBD, the new location follows the opening of H&M at Sylvia Park Shopping Centre in Auckland last October.

    Spanning 2535 square metres and set over two levels; the Christchurch store will house apparel, underwear and accessories for men, women, kids and baby, as well as being the first H&M store in New Zealand to offer the Home concept.

    “We are also looking forward to introducing our H&M Home concept to our customers for the first time and cannot wait to see the response on opening day,” said Hans Andersson, Australia & New Zealand Country Manager for H&M.

    The global fashion chain entered the New Zealand market in 2016 with the opening of its first store in Sylvia Park Shopping Centre, Auckland, and will open its first store in Wellington at Queensgate Shopping Centre later this year.

    In its most recent results, H&M saw revenue including VAT increase by 7 per cent in local currencies during June compared to the same month the previous year.

    The total number of stores in the group amounted to 4,517 at the end of June compared to 4,095 the previous year.

    In its recent half-year results, sales, including VAT, grew by 9 per cent to SEK113.907 billion (US$13.4 billion) for its first half.

    Meanwhile, H&M said it will no longer publish monthly sales figures, instead opting to report its results on a quarterly basis and begin holding capital market days for company shareholders.

    Karl-Johan Persson, CEO of H&M, said that a month is “far too short a period over which to assess how sales are developing and in fact, a single month’s sales can actually be misleading, since calendar and weather effects – among other things – may significantly affect the outcome.”

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  • H&M Beauty is coming to Malaysia this Fall 2017

    H&M Beauty is coming to Malaysia this Fall 2017

    An affordable cult beauty line worldwide, H&M Beauty is finally making its way to Malaysian shores and it is set to launch in the coming Fall 2017, which means September onwards.

    Featuring over 1,000 makeup and beauty products, H&M Beauty will be launching in selected Malaysian stores, where it will have its own dedicated area within.

    Packed in its signature ivory, black and gold cases inside makeup/toiletries bags, the collection will also include an assortment of fragrances, bodycare, hair care and styling products.

    To top it off, H&M Malaysia will also bring in two subsidiary collections: a premium bodycare range, and the ‘Conscious’ range of Ecocert-approved sustainable products.

    And not to forget, seasonal limited edition collections, much like its fashion designer collaborations.

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  • H&M to open in Wellington, New Zealand

    H&M to open in Wellington, New Zealand

    Wellington’s fashion scene continues to grow as H&M (Hennes & Mauritz) opens in Queensgate Shopping Centre, Lower Hutt, later this year.

    The fashion retailer made waves in 2016 when it opened its first store in Sylvia Park shopping centre, drawing in crowds from all over Auckland.

    Now Wellington is getting a slice of the Swedish retailer with plans for the store to open late this year, with more information to be realised closer to the yet-to-be-confirmed opening date.

    Queensgate Shopping Centre was closed late 2016 after the Kaikoura-centred earthquake damaged the building’s infrastructure.

    The centre re-opened early April of this year after parts of the complex were redesigned with shock absorbent technology.

    At the time Diversified NZ Property Trust acquired the shopping centre late November of 2015, the centre was the largest enclosed shopping area in the lower North Island. It is managed by Stride.

    Stride’s general manager shopping centres, Roy Stansfield, says this announcement marks an important milestone in a large project, which has been a long time in the works.

    “We’re incredibly excited that a world-renowned brand like H&M has chosen Queensgate as the location for its first Wellington store. It’s testament to the standard of the centre and the opportunities in the region as a whole.

    “Customers and retailers alike have been curious about the works going on in the centre as we prepare for H&M’s opening, so we’re very happy to be able to finally confirm who this new tenant is,” he said.

    Leading up to the store’s launch, Stansfield says Stride will continue to share information through the company’s website, Facebook page and within Queensgate.

    “We’re very much looking forward to seeing the new store take shape.”

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  • H&M India to debut e-commerce, plans 8 new stores

    H&M India to debut e-commerce, plans 8 new stores

    H&M plans to launch an India-dedicated e-commerce this year, as well as several new store openings, in a bid to reach customers across all of India, not just major metropolitan hubs.

    The Swedish fast-fashion giant is planning to add 8 new stores within the next 6 months, adding five more stores in Tier 1 cities like Mumbai, Delhi and Bengaluru, and three and in Tier 2 cities.

    H&M will add two new stores in Mumbai, two at Bengaluru and one in Delhi’s National Capital Region (NCR) of Ghaziabad.

    The brand will also foray into new cities of Coimbatore, Indore and Amritsar this year, the company said in a statement.

    “H&M is especially excited to expand its reach in India, a market that poses tremendous potential both in Tier I & Tier II cities”, said Janne Einola, Country Manager at H&M India.

    Meanwhile, H&M’s online vertical is on the verge of deployment. The venture into online market would see it cater to Tier 2 and tier 3 cities where H&M does not have any physical presence as of yet.

    The group’s Indian operations turned profitable this year, posting remarkable sales of Rs 435 crore (US$67 million) in six months from December 2016 to May 2017.

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  • H&M announces location of first store in Vietnam

    H&M announces location of first store in Vietnam

    The world-renowned brand is following in the footsteps of Zara and Topshop. Swedish fashion giant Hennes & Mauritz (H&M) has announced plans to open its first store in Vietnam at the Vincom Dong Khoi commercial complex in Ho Chi Minh City’s District 1.

    The store, which will cover 2,200 square meters across two floors, will open with the launch of the brand’s Fall-Winter 2017 Collection this autumn.

    Fredrik Famm, H&M Country Manager for Southeast Asia, said the opening of the HCMC store will offer a new shopping experience for local customers, providing more options for fashion lovers to create their own styles and personalities.

    In mid-February this year, H&M also started recruiting staff for a store it plans to open in Hanoi.

    H&M was founded in Sweden in 1947 and is listed on the Nasdaq Stockholm. H&M Group has more than 4,300 stores in 66 markets, including franchise markets.

    Other famous fashion brands like Zara and Topshop have also recently made their debuts in Vietnam.

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  • Community park to be settled in MyTown Kuala Lumpur

    Community park to be settled in MyTown Kuala Lumpur

    MyTown Shopping Centre has opened in the Kuala Lumpur CBD as a joint development by Boustead Holdings and retail banker Ikano.

    It features 1.6 million sqft (148,644 sqm) of retail space (more than 400 stores), an alfresco dining area and a park.

    Anchor tenants include the biggest Ikea and Zara stores in Malaysia, Malaysia’s first Best flagship, Food Empire, Golden Screen Cinemas, H&M, Parkson Department Store and Village Grocer.

    Biggest ZARA in Malaysia @ MyTOWN

    Its two-acre (0.8ha) Town Park has been set aside for community events. It includes ramps and tracks for rollerblading and skateboarding. A Sunken Garden features amphitheater-style.

    MyTown is the first shopping centre in Malaysia to feature Soundscapes – special compositions and custom designed sounds to offer an immersive environment in key locations.

    MyTOWN Launch

    Mr Christian Rojkjaer – Managing Director of Ikea Southeast Asia & Director of Boustead Ikano Sdn Bhd (3rd from left) & Tan Sri Dato’ Seri Lodin Wok Kamaruddin – Deputy Chairman / Group Managing Director, Boustead Holdings Berhad (4th from left) flanked by Directors from Boustead Ikano Sdn Bhd, Boustead Holdings Bhd & Ikano Ptd Ltd including (from left to right), Mr Lee Hartigan, Dato Sri’ Ghazali Mohd Ali, Datuk Koo Hock Fee, Ms. Cheah Swee Choo, Mr Sebastian Hylving, Mr Joakim Hogsander – General Manager of MyTOWN Shopping Centre & Mr Thomas Malmberg.

    GM Joakim Hogsander describes the centre as a lifestyle mall. “We have created a special customer journey through our choice of tenants, design and experience.”

    MyTown has been awarded green building status by the US Green Building Council (USGBC) and Malaysian Green Building Index.

  • H&M Sustainability goal: 100 per cent recycled by 2030

    H&M Sustainability goal: 100 per cent recycled by 2030

    The latest H&M Sustainability Report released this week aims for 100 per cent recycled or other sustainably sourced materials by 2030.

    And the Swedish headquartered retailer says it wants to be “climate positive” throughout its entire value chain by 2040.

    Another key highlight is a commitment to switch to 100 per cent renewable electricity. In 2016, 96 per cent of the company’s global electricity in its own operations came from renewable sources.

    The report also mentions that H&M in 2016 was named the biggest global user of cotton  certified by the Better Cotton Initiative.

    “When it comes to recycling and reuse, the H&M group is continuing to drive an ambitious development plan,” the company said in a statement.

    Since the start of the global Garment Collecting initiative in 2013, the H&M group has collected 39,000 tonnes of unwanted textiles. By 2020 the company aims to collect at least 25,000 tonnes of textiles every year. The report also shows that the work to scale-up the H&M group’s industrial relations and fair living wage programs continues with good progress.

    “We want to use our size and scale to lead the change towards circular and renewable fashion while making our company even more fair and equal. This is why we have developed a new strategy aiming to take our sustainability work to the next level,” said Anna Gedda, head of sustainability at the H&M group.

    “We want to lead by example, pave the way and try new things – both when it comes to the environmental and social side – to ultimately make fashion sustainable and sustainability fashionable. Our climate positive strategy is one way of doing this,” she added.

    DBL factory visit. Savar. Bangladesh

    Fashion from plastics

    This year, H&M launched its first Conscious Exclusive collection featuring clothing made from Bionic, a polyester made from recovered plastic from shorelines.

    “We are committed to proving that sustainable fashion has a place on the red carpet as well as making it part of the standard offer in our stores,” the report says.

    The Conscious Exclusive collection is available in about 160 H&M stores worldwide, as well as online from April 20.

    “We continually work with materials and processes that make our products more sustainable. In doing so, we contribute to the democratisation of sustainable fashion by making more environmentally friendly choices available to our customers.

    “We also help lift these materials to scale and create demand for further innovation. In the long run, this can change the way fashion is produced by greatly reducing the need for raw materials, which in turn lightens the burden on our precious planet.”

    Other sustainable materials in the Conscious Exclusive collection and in other H&M ranges available throughout the year include fabrics such as recycled polyester, Tencel and organic cotton.

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