H&M restarts revenue growth under new CEO Daniel Erver

(Source: AFP) An H&M store in Madrid, Spain. (Photo: AFP/VNA)

Investors will seek reassurance from new H&M CEO Daniel Erver as he says plans are in place to restart revenue growth.

The Swedish fashion retailer will report its first quarterly earnings under Daniel Erver's leadership next week.

H&M has struggled to keep up with larger rivals such as Zara owner Inditex, whose shares hit a record high last week, while Chinese-founded fast-fashion company Shein has also been expanding rapidly in Europe.

H&M, the fast-fashion, low-cost retailer, sells dresses from $9.99, jeans from $17.99 and is expanding into higher price points with its Cos and Arket brands.

H&M is expected to report its lowest quarterly revenue in two years on Wednesday (March 27).

LSEG analysts expect revenue to fall to 53.4 billion Swedish krona ($5 billion) from 54.9 billion krona a year earlier. Operating profit is expected to double to 1.422 billion krona.

H&M aims to achieve an operating profit margin of 10% this year.

However, the retailer is stepping up investment in stores and logistics, announcing in January 2024 that capital spending would increase by 30% this year to 11-12 billion kronor (more than $1.1 billion)./.

(Vietnam+)

Source: https://www.vietnamplus.vn/hm-tai-khoi-dong-tang-truong-doanh-thu-duoi-thoi-tan-ceo-daniel-erver-post936293.vnp