Consumers are investing in their wardrobes again, now that the Covid measures have been lifted. The Swedish H&M Group sees this reflected in a rise in sales. Nevertheless, the fashion retailer still has not fully recovered from the pandemic.
Better than expected
The Swedish fashion group that also owns Monki, & Other Stories, Arket and Weekday also saw its sales rise by 17 % in the second quarter, to 54.5 billion Swedish kronor (5.1 billion euros). This is better than what analysts had expected, but still the fashion retailer has not reached its pre-pandemic sales levels. Details on the profit will follow at the end of this ,month with the publication of the half-year figures.
Despite weak consumer confidence, the fashion sector as a whole is reviving, now that shops are open again and the Covid restrictions are behind us. Industry peer Inditex (Zara) reported very strong figures last week, reporting that consumers are replenishing their wardrobes after two years of sitting at home. The question is whether this trend will continue for the rest of the year.
H&M has been in the news in recent months with several innovative initiatives, such as the launch the online marketplace ‘H&M with Friends’, which is also open to brands from external companies. In its American shops, the retailer is testing digital technologies, and together with Ikea, H&M opened a creative hub in London.