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Fashion Retailer H&M’s Q1 Operating Profit Rises More Than Expected 

The logo of H&M is on display outside a store on the day it closes, as the fashion retailer exits the Russian market, in Moscow, Russia November 30, 2022. (Reuters)
The logo of H&M is on display outside a store on the day it closes, as the fashion retailer exits the Russian market, in Moscow, Russia November 30, 2022. (Reuters)
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Fashion Retailer H&M’s Q1 Operating Profit Rises More Than Expected 

The logo of H&M is on display outside a store on the day it closes, as the fashion retailer exits the Russian market, in Moscow, Russia November 30, 2022. (Reuters)
The logo of H&M is on display outside a store on the day it closes, as the fashion retailer exits the Russian market, in Moscow, Russia November 30, 2022. (Reuters)

H&M, the world's second-biggest listed fashion retailer, reported on Wednesday a larger-than-expected operating profit for the December-February period.

Operating profit in the Swedish group's fiscal first quarter was 2.08 billion crowns ($196.3 million), up from 725 million a year earlier, against a mean forecast of 1.43 billion in an LSEG poll of analysts.

H&M has said it aims to reach a 10% operating profit over the course of this year.

Measured in local currencies, H&M's sales from March 1 to 25 increased by 2%, the retailer said.

The Swedish fashion retailer, known for $19.99 jeans and dresses under $15, also sells leather trousers for more than $300 and, under its Cos brand, coats for as much as $1,190.

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Fashion

Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
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Hermes 2Q Sales Rise 13% on Continued Appetite for High-End Luxury

People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)
People stand with Hermes shopping bags as they wait at a traffic light in Tsim Sha Tsui, a bustling shopping hotspot, in Hong Kong, China December 5, 2023. (Reuters)

Birkin-bag maker Hermes reported a 13% rise in second-quarter sales on Thursday, demonstrating the continued appetite from wealthy shoppers for its luxury handbags, even as less affluent consumers pull back.

Sales at the French luxury group grew to 3.7 billion euros ($4.02 billion), a 13% organic sales rise that strips out currency fluctuations. The figure was in line with analyst expectations, according to a Visible Alpha consensus.

Operating profit for the first half was 3.1 billion euros, compared to a forecast from consensus provider Visible Alpha for 3.2 billion.

One of the most steady performers in the luxury goods sector -- even as economic conditions worsen -- the French group's results stand out after a string of disappointing earnings updates from peers which have raised investor concern about uncertain prospects for the sector in the coming months.

Hermes' famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity, and CEO Axel Dumas told reporters the company had seen "no big interruption in trends".

However, he said Hermes was seeing slightly less traffic with aspirational clients, which was impacting higher volume products like fashion accessories.