Connect with us

Fashion

Sweden’s H&M delivers stronger FY25 margins on inventory gains

Published

on

Sweden’s H&M delivers stronger FY25 margins on inventory gains



Swedish clothing retailer H&M Hennes & Mauritz AB has reported a strong improvement in profitability in full fiscal 2025 (FY25) ended November 30, supported by tighter cost control, improved inventory productivity and a stronger customer offering, despite modest topline growth and currency headwinds. Net sales in local currencies rose 2 per cent year over year (YoY). In SEK terms, net sales stood at SEK 228,285 million (~$25.8 billion), compared with SEK 234,478 million in the previous fiscal, reflecting adverse currency movements.

The gross profit totalled SEK 121,821 million, with the gross margin unchanged at 53.4 per cent. Selling and administrative expenses declined 4 per cent to SEK 103,292 million (~$11.7 billion).

H&M has improved profitability in FY25 despite currency headwinds, with local-currency sales up 2 per cent and operating margin rising to 8.1 per cent.
Cost control, inventory optimisation and strong European demand supported earnings.
Q4 margins strengthened sharply, while store rationalisation and sustainability progress remained key strategic pillars.

The operating profit increased to SEK 18,395 million from SEK 17,306 million, lifting the operating margin to 8.1 per cent from 7.4 per cent. Profit after tax rose to SEK 12,085 million, corresponding to earnings per share of SEK 7.58. Cash flow from operating activities after working capital changes amounted to SEK 31,120 million, H&M said in a press release.

Region-wise, Western Europe remained the largest market at SEK 79,195 million, with flat sales in SEK but 2 per cent growth in local currencies, indicating stable core demand. Eastern and Southern Europe delivered the strongest underlying growth, with local currency sales rising 4 per cent and 5 per cent respectively for the full fiscal. The Nordics recorded a 1 per cent decline in local currencies, reflecting a more mature home market. North and South America saw softer demand, with sales down 5 per cent in SEK and 1 per cent in local currencies, while Asia, Oceania and Africa declined 7 per cent in SEK and 1 per cent in local currencies, impacted by weaker markets and FX effects.

The store network continued to be optimised, with total stores falling to 4,101 from 4,253, a net reduction of 152 stores YoY. The largest closures were in Asia, Oceania and Africa, followed by Western Europe, while North and South America was the only region to add stores.

In the fourth quarter of FY25, sales increased 2 per cent in local currencies, even as the store base was around 4 per cent smaller YoY. In SEK terms, Q4 net sales declined to SEK 59,221 million from SEK 62,193 million, reflecting a negative currency translation impact of around 7 percentage points due to the stronger krona.

The gross margin improved to 55.9 per cent from 54.6 per cent, while operating profit surged 38 per cent to SEK 6,364 million, lifting the operating margin to 10.7 per cent. Profit after tax rose to SEK 4,332 million, or SEK 2.72 per share. Inventory levels declined 12 per cent YoY to SEK 35,427 million, signalling improved stock efficiency.

On sustainability, H&M said its Scope 3 greenhouse gas emissions fell by around 30 per cent in 2025 compared with the 2019 baseline, keeping the group on track to meet its 56 per cent reduction target by 2030. The company was A-listed by CDP for climate and water during the year.

Looking ahead, H&M expects sales between December 1, 2025, and January 31, 2026, to decline 2 per cent in local currencies, citing strong Black Friday sales, weaker December demand and a negative calendar effect linked to the timing of the Chinese New Year. Capital expenditure for 2026 is planned at SEK 9-10 billion, focused on store upgrades, technology infrastructure and the gradual rollout of new logistics solutions in Europe.

“Our work in 2025 has gradually contributed to positive development towards all our long-term targets. The sales trend is positive over the year as a whole, and earnings strengthened in the second half,” said Daniel Erver, CEO of H&M.

Fibre2Fashion News Desk (SG)



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Fashion

Sri Lanka clears Renewable Energy Resources Development Plan 2025-2030

Published

on

Sri Lanka clears Renewable Energy Resources Development Plan 2025-2030



Sri Lanka’s cabinet recently approved a Renewable Energy Resources Development Plan for 2025-2030, prepared by the Sri Lanka Sustainable Energy Authority, Minister of Health and Mass Media Nalinda Jayatissa announced.

The target is to achieve 70 per cent of the country’s national electricity demand through renewable energy sources by 2030, and carbon neutrality by 2050.

Sri Lanka’s cabinet recently approved a Renewable Energy Resources Development Plan for 2025-2030, prepared by the Sri Lanka Sustainable Energy Authority, Minister of Health and Mass Media Nalinda Jayatissa announced.
The target is to achieve 70 per cent of the country’s national electricity demand through renewable energy sources by 2030, and carbon neutrality by 2050.

This report provides the prioritisation of large-scale renewable energy development projects, and the planned projects for the upcoming periods, based on resource maps of the particular energy sources.

Potential sites of different types of renewable energy resources have been identified, and taken for prioritisation for future development based on resource potential, land use, distance to roads, slope, distance to grid substations (GSS), urban centres and exclusionary conservation areas.

Resource potential was rated as the most important criterion. Access to GSS was not considered as a criterion for wind and solar plants above 100 MW.

Fibre2Fashion (DS)



Source link

Continue Reading

Fashion

Late January lifts Brazil cotton prices as sellers hold firm

Published

on

Late January lifts Brazil cotton prices as sellers hold firm



Brazil’s domestic cotton prices have strengthened in late January as buyers showed greater willingness to trade while sellers held firm on quotations. This dynamic pushed spot market deals above export parity levels, even as international cotton prices softened and the US dollar weakened against the real, , as per the Centre for Advanced Studies on Applied Economics (CEPEA).

Brazil’s domestic cotton prices have firmed in late January as buyers accepted higher offers and sellers held quotations, lifting spot deals above export parity despite weaker global prices and a softer US dollar.
Liquidity stayed thin as farmers focused on cotton planting and soy harvesting.
For the month, the CEPEA/ESALQ Index eased 0.31 per cent, while FAS export parity fell 2.59 per cent.

At the same time, overall market liquidity remained subdued, as producers prioritised field activities, particularly cotton planting and soy harvesting. Trading volumes stayed thin toward the end of the month, reflecting a cautious approach from both sides of the market, the CEPEA said in its latest fortnightly report on the Brazilian cotton market.

On a monthly basis, however, prices edged slightly lower. The CEPEA/ESALQ Index (payment in eight days) slipped 0.31 per cent between December 30 and January 30, closing at BRL 3.4754 per pound.

Export parity values declined more sharply, with Free Alongside Ship (FAS) prices falling 2.59 per cent between January 19–26 to BRL 3.3872/pound ($0.6414/pound) at the port of Santos and BRL 3.3977/pound ($0.6434/pound) at Paranagua, reflecting weaker international benchmarks and a softer US dollar.

Fibre2Fashion News Desk (HU)



Source link

Continue Reading

Fashion

Vietnam factory output expands as PMI holds above 50 in Jan

Published

on

Vietnam factory output expands as PMI holds above 50 in Jan



Vietnam’s manufacturing sector began 2026 with stronger output growth, supported by steady demand, rising employment and robust purchasing activity, even as headline PMI eased slightly in January.

S&P Global Vietnam Manufacturing Purchasing Managers’ Index stood at 52.5 in January 2026, down from 53 in December but remaining firmly above the 50 threshold, signalling a continued improvement in business conditions for the seventh straight month.

Production expanded sharply, driven by faster growth in new orders and a renewed, albeit modest, rise in export demand, including orders from other Asian markets such as India. Manufacturers responded by increasing hiring for a fourth consecutive month and stepping up purchasing to meet higher output requirements.

“It was a solid start to the year for the Vietnamese manufacturing sector as firms ramped up output in response to greater new orders and as part of efforts to meet client needs in a timely manner. Carrying on the momentum built towards the end of 2025, the sector looks to be in good shape for a successful 2026,” said Andrew Harker, economics director at S&P Global Market Intelligence.

Inflationary pressures, however, remained elevated. Input costs rose sharply due to strong demand and material shortages, while selling prices increased at the fastest pace since April 2022. Despite this, sentiment improved further, with 55 per cent of firms expecting output to rise over the next 12 months.

“The one potential headwind for firms, however, is the strength of inflationary pressures. Supply shortages of materials pushed up prices sharply again in January and firms responded accordingly by hiking their selling prices to a greater extent. So far demand has remained resilient in the face of these pressures, but we will need to keep an eye out for any softening of new order growth in the months ahead,” Harker added.

Vietnam’s manufacturing sector started 2026 on a strong footing, with output, new orders and employment expanding despite a slight dip in PMI.
January PMI eased to 52.5 but stayed in expansion for a seventh month.
Rising domestic and export demand lifted hiring and purchasing, though input costs and selling prices climbed sharply amid material shortages.

Fibre2Fashion News Desk (HU)



Source link

Continue Reading

Trending