As the specialised fashion portal 'Business of Fashion' reported at the end of March, the Swedish textile giant has managed to report profits after announcing a cost reduction in 2022 to mitigate the effects of inflation and the cost of raw materials.
Positive figures for the Swedish group show that its operating profit in the first fiscal quarter was 725 million Swedish kronor (69.73 million dollars), compared to a profit of 458 million kronor a year earlier. Following the figures, group CEO Helena Helmerson said in a company statement that "further steps have been taken towards the goal of reaching an operating margin of 10% already next year". H&M expects net sales in March to have increased by up to 4% in local currencies compared to the corresponding period last year.
H&M bet by a faster business, strong and circulate
Part of the responsibility for H&M's increased profits is due to the Swedish textile chain's decision to focus and focus more on a faster, stronger and more circulating business through its 'Resale' programme on the Sellpy platform. The company increased its stake in the second-hand fashion platform Sellpy and this generated a revaluation of its investment. H&M Group currently owns around 80 percent of Sellpy and estimates that it will generate more than SEK 1 billion in sales by 2023.
"Sellpy is a good example of how we are working on developing new circular business models and how investments in sustainability provide the H&M Group with long-term business opportunities. We have a strength in the commercial aspect of combining fashion, price, quality and sustainability," explained group CEO Helena Helmersson.
The Swedish group launches its new venture in the beauty sector
In a statement issued by the company on Tuesday, the H&M Group confirmed the latest plans and next steps to be taken: the opening of the first "H&M Beauty" flagship stores. H&M, until now, only had a limited range of beauty, perfumery and personal care products, but soon, a new identity will be given to the brand, with a wider offer and the presence of major third-party brands, for example, the renowned Huda Beauty. Other brands featured in H&M's press release include WISHFUL, KAYALI, Smashbox, Anastasia Beverly Hills, KVD, Origins and Emma S.
"We are excited to now be able to offer our customers a well-selected beauty assortment in line with the fashion offerings we provide," said the CEO of H&M Beauty in a press release issued by the company itself. "Our goal is to inspire every customer who enters an H&M shop, or shops online via hm.com, to leave with the complete fashion and beauty idea of a look."
H&M affirms that it has worked actively during the last years to build his own organisation of beauty and these tend insignia pretend to fine-tune his offer, satisfy the demand of the customers and create an experience of high physical shop. The shops are situated in Oslo, with a space of roughly 300 square metres by shop, will be situated inside H&M with his own entrances and will offer the own mark H&M Beauty together with more than 80 external marks.