H&M Probes Myanmar Factory Abuses

FILE PHOTO: Pedestrians and shoppers walk past a branch of fashion retailer H&M in central Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo
FILE PHOTO: Pedestrians and shoppers walk past a branch of fashion retailer H&M in central Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo
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H&M Probes Myanmar Factory Abuses

FILE PHOTO: Pedestrians and shoppers walk past a branch of fashion retailer H&M in central Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo
FILE PHOTO: Pedestrians and shoppers walk past a branch of fashion retailer H&M in central Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo

H&M told Reuters it is following up on 20 alleged instances of labor abuse at Myanmar garment factories that supply the world's second-largest fashion retailer, just weeks after top rival Zara owner Inditex said it is phasing out purchases from the Southeast Asian country.

A UK-based human rights advocacy group tracked 156 cases of alleged worker abuses in Myanmar garment factories from February 2022 to February 2023, up from 56 in the previous year, indicating a deterioration of workers' rights since a military coup in February 2021.

Wage reduction and wage theft were the most frequently reported allegations, followed by unfair dismissal, inhumane work rates, and forced overtime, according to a report by the NGO, the Business and Human Rights Resource Centre (BHRRC) seen by Reuters and set to be published on Wednesday.

"All the cases raised in the report by BHRRC are being followed-up and where needed remediated through our local team on the ground and in close cooperation with relevant stakeholders," H&M said in a statement.

"We are deeply concerned by the latest developments in Myanmar, and we see increased challenges to conduct our operations according to our standards and requirements," the Swedish retailer said.

The BHRRC has been tracking allegations of workers' rights abuses in garment factories since the military junta took power in Myanmar, plunging it into political and humanitarian crisis. The tracker includes abuse cases at 124 separate factories.

The BHRRC said it tracks cases of alleged abuses through sources including union leaders, international media, and local media such as Myanmar Labor News, and seeks to verify reports by checking with brands and interviewing workers. Reuters did not independently verify its findings.

There have been 21 cases of alleged abuses linked to Inditex suppliers, according to the report. Inditex declined to comment on the report.

A spokesperson for Myanmar's military government did not reply to a request for comment on the findings. The Myanmar Garment Manufacturing Association did not reply to a request for comment.

Spanish group Inditex was the latest brand to say it would cut ties with Myanmar suppliers, after Primark and Marks & Spencer last year, in a trend that some say could ultimately leave garment workers worse off.

Some brands have instead ramped up monitoring of suppliers in Myanmar, the survey conducted by the BHRRC found. Field offices in the country, for example, enable brands to conduct their own inspections instead of relying on external audits.

Dublin-based Primark has doubled its number of Yangon-based staff even after announcing last September it would stop sourcing from Myanmar, the survey found, while Danish fashion company Bestseller increased its number of staff on the ground from three to 11 since the coup.

H&M and Bestseller are among 18 brands that are part of the European Union-funded MADE project aimed at improving labor conditions in Myanmar's garment factories.

The EU's stance is that companies should continue sourcing garments from Myanmar, where the industry is a key employer, with more than 500 factories producing clothes and shoes for big brands.

"By engaging as a company in discussions with local labor rights groups and trade unions on wages and labor conditions you can have leverage," said Karina Ufert, CEO at the European Chamber of Commerce in Myanmar.

"By leaving the country, it is difficult to see how you can have an influence on local conditions."

Vicky Bowman, former UK ambassador to Myanmar and director of the Myanmar Center for Responsible Business, said the international brands under pressure to stop buying from Myanmar are also the most likely to provide stable jobs and take additional steps to guard against rights abuses.

"If they leave, either the jobs disappear entirely, or factories scrabble to receive orders from footloose buying agents who care only about cheap labor and do not worry about factory conditions," Bowman told Reuters.



Storied Paris Department Store Seeks Bankruptcy Protection

(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)
(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)
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Storied Paris Department Store Seeks Bankruptcy Protection

(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)
(FILES) This photograph shows the BHV store (Bazar de l'Hotel de Ville) in Paris on October 5, 2025. (Photo by JOEL SAGET / AFP)

Paris department store BHV Marais, which courted controversy last year with a partnership with Asian fast-fashion giant Shein, said Tuesday it had sought bankruptcy protection to protect its operations and jobs.

The bankruptcy procedure "is part of BHV's relaunch, not its failure," the company said, adding that the landmark store opposite Paris City Hall that employs 700 people will remain open.

The store's previous owner already had problems with brand-name boutiques it hosted over payment delays before it sparked controversy last year by announcing that BHV Marais would host Shein's first physical permanent store.

The announcement struck a raw nerve in a French public concerned about the disappearance of local jobs amid a flood of Asian imports, and triggered the departure of a number of brands.

The owner finally sold the business to a number of its managers in June, who promptly parted ways with Shein.

The new owners said that as part of that deal the ownership of part of the building was transferred, but they had yet to receive the funds, which adversely impacted their plans to revamp the business.

The owner of the building, the Canadian asset manager Brookfield, rejected that assertion, saying it does not have any outstanding sums due to BHV Marais.

French labor inspectors believe that BHV Marais has not been making payments, which its management has denied.


L’Oreal Shares Bounce on Third-Quarter Sales

A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)
A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)
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L’Oreal Shares Bounce on Third-Quarter Sales

A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)
A L'Oreal sign is displayed at the beauty products section of a department store inside a shopping mall in Beijing, China June 10, 2025. (Reuters)

Shares in L'Oreal rose 4% on Friday, hitting their highest in more than two years, after the French cosmetics giant reported third-quarter sales well ahead of expectations on strong demand for premium products in China and elsewhere.

Sales from July ‌to September rose ‌7.7% on an adjusted like-for-like basis ‌to €11.56 ⁠billion ($12.95 billion), topping a ⁠consensus analyst forecast of 5.9% growth in a Visible Alpha poll, L'Oreal said late on Thursday.

The maker of Lancome creams and Prada perfumes beat estimates for growth in all regions apart from Latin America, with North Asia, which is ⁠predominantly China, significantly ahead. All of its ‌divisions apart from ‌its mass market unit exceeded expectations.

"L'Oreal, once again, beat a ‌high bar," Barclays analysts said in a note.

Analysts ‌at Jefferies called the report "an impressively strong update", highlighting a "momentum shift in China and Europe" that lifted the growth rate in its Luxe division.

The group generates ‌a third of its revenue from its luxury division, but in China that ⁠business ⁠accounts for about two thirds of its sales in the market, positioning it well for a pick-up in Chinese demand. L'Oreal says it is growing three times faster than the market in China.

Shares were up 4.4% at €431.2 ($482.60) by 0917 GMT, the highest since June 2024. The shares are up by more than 17% this year.

"We see scope for the shares to test €450 as investors increasingly recognize the durability of its superior growth profile," the Barclays analysts added.


Gucci Owner Kering Drops 12% as Luxury Braces for Tough Winter

The logo of French luxury group Kering is pictured on the day of the Kering General Assembly meeting at the company's headquarters in Paris, France, May 28. (Reuters)
The logo of French luxury group Kering is pictured on the day of the Kering General Assembly meeting at the company's headquarters in Paris, France, May 28. (Reuters)
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Gucci Owner Kering Drops 12% as Luxury Braces for Tough Winter

The logo of French luxury group Kering is pictured on the day of the Kering General Assembly meeting at the company's headquarters in Paris, France, May 28. (Reuters)
The logo of French luxury group Kering is pictured on the day of the Kering General Assembly meeting at the company's headquarters in Paris, France, May 28. (Reuters)

Shares in Gucci owner Kering tumbled 12% on Friday after the group reported further sales declines, but said it would stick with CEO Luca de Meo's turnaround plan and accelerate store closures, aiming for 125 by year-end.

The recovery long promised by luxury brands seems nowhere in sight, as the expansion of war ‌in the Middle ‌East, along with China's tax crackdown on ‌the ⁠wealthy, piled further ⁠pressure on the world's biggest luxury conglomerates in the third quarter, and executives buckled in for a tough winter.

Riots in Paris, leaving Louis Vuitton shop windows smashed and electric-bike bonfires near luxury shopping hub Place Vendome, threw into sharp relief the political risk faced by luxury brands not just abroad but also ⁠at home.

Shares in LVMH and Hermes were ‌also down 1% to 1.5% on ‌Friday, as crude prices hit their highest level since early May, worsening ‌the squeeze on households that has curbed consumers' ability to ‌splurge on handbags and clothes.

Gucci's decline has continued despite de Meo's plan to make the brand's prices more enticing to middle-class consumers and creative director Demna's new collections hitting stores.

"The progress made on ‌improving brand desirability remains in its very early stages," JPMorgan analyst Chiara Battistini said in a ⁠note. Gucci ⁠sales improved in wholesale, but were down 6% overall as fewer shoppers visited its stores.

While Kering struggles to execute a turnaround against a weak economic backdrop, even high-end Hermes is showing signs of slowing, with its ready-to-wear division falling 2% in the third quarter due to weak Chinese demand. Overall, Hermes reported its weakest quarterly sales growth since 2020.

Across the sector, valuations have taken a beating as investors reassess future growth prospects. After a 40% slide in share price since January 1, Hermes' valuation is its lowest since 2014, while LVMH's is at a 10-year low.