Newscasts - H&M Q2 profit beats expectations despite "cautious" consumers

H and M Hennes and Mauritz AB

26/06/2025 10:35

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_xfi49euf&referenceId=tag:reuters.com,2025:newsml_RW524926062025RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: Swedish fashion retailer H&M reported a slightly stronger second-quarter profit on Thursday, an encouraging sign as CEO Daniel Erver tries to reboot the brand and improve profitability. Francis Maguire reports.

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Video Transcript:

H&M shares were up more than 6% Thursday. Investors were happy when the fashion giant reported a slightly stronger than expected second-quarter profit. They focused on the profit number rather than second-quarter sales, which fell more than predicted. Thursday's update was encouraging for CEO Daniel Erver as he tries to refresh the Swedish brand. He said his focus is on profitability rather than solely sales growth. Sales hit $5.99 billion in the March to May period, down from a year ago and below analyst expectations. But profit reached more than $626 million, above market projections. Zara owner Inditex also reported disappointing sales earlier this month. It's a sign consumers have pulled back from spending on clothes as US tariffs create risks for global economic growth. H&M further said it expected sales in June to rise 3%. That would be a big improvement after a 6% fall a year ago in the same period.