H&M's New Boss Erver Faces Battle to Reboot Sales

H&M logo is seen on one of the Swedish retailer's shops January 30, 2020. (Reuters)
H&M logo is seen on one of the Swedish retailer's shops January 30, 2020. (Reuters)
TT

H&M's New Boss Erver Faces Battle to Reboot Sales

H&M logo is seen on one of the Swedish retailer's shops January 30, 2020. (Reuters)
H&M logo is seen on one of the Swedish retailer's shops January 30, 2020. (Reuters)

Investors will be looking for reassurances from new H&M CEO Daniel Erver that he has the right plan to reboot revenue growth when the fast fashion retailer reports its first quarterly earnings under his leadership on Wednesday.
Erver took the helm in January after his predecessor Helena Helmersson stepped down unexpectedly on the day of H&M's annual results, unsettling investors, Reuters reported.
H&M shares are still down 10% from where they stood before that.
The retailer has struggled to keep pace with bigger rivals such as Zara owner Inditex, whose shares hit a record high last week, while China-founded fast-fashion firm Shein is also expanding rapidly in Europe.
"The consumer space remains very polarized," said Dora Buckulcikova, lead portfolio manager of Dutch asset manager Robeco's fashion equity strategy.
"We have been quite surprised by just how strong demand for certain brands has been, but others in the middle market are getting squeezed."
H&M, which sells dresses for $9.99 and jeans for as little as $17.99, but is also stretching into higher price points with its brands Cos and Arket, is expected to report its weakest quarterly sales in two years on Wednesday.
Revenue is expected to drop to 53.4 billion Swedish crowns ($5 billion) from 54.9 billion a year earlier, LSEG analyst estimates show. Operating profit is expected to double to 1.422 billion crowns.
H&M says it is prioritizing profitability over sales volumes as it aims to reach a 10% operating margin this year.
Still, the retailer is stepping up investment in its stores and logistics, announcing in January that capital expenditure would increase by up to 30% this year to 11-12 billion crowns.
H&M needs to follow Inditex's lead and invest in improving its store network and logistics, even if that weighs on its profit margin short-term, said Nick Clay, portfolio manager at Redwheel in London. Clay previously held H&M in his fund, but switched to Inditex in May 2022.
SQUEEZED MIDDLE
Improving the look and feel of stores is one way H&M can attract more aspirational shoppers, experts say. In a store H&M opened last week on the King's Road in London, the layout is more spacious, the range more curated and the changing rooms more comfortable than a typical H&M.
Investors will also be looking for Erver to detail plans to "near shore" and improve H&M's logistics.
The speed with which companies in the sector respond to consumer behavior is a key differentiator, said Olivier van Hirtum, head of developed market equities at APG Asset Management in Amsterdam.
"Companies that have shorter supply chains – both physically, and in time – can respond faster to fashion trends, and we've seen them take share from companies that take longer," he said.
H&M is taking measures to improve collections, time to market, and inventory geographic allocations, which should drive improvements in its top-line growth and, by extension, profitability, said Magnus Raman, analyst at Kepler Cheuvreux in Stockholm.
H&M has also been closing stores in recent years. At the end of its 2023 financial year it had 700 fewer stores than in 2019, a decline of 14%.
H&M's cash position of 26.398 billion crowns, or around $2.5 billion, was up 22% from a year earlier, though still small compared to Inditex's 11.4 billion euro ($12.34 billion) cash pile.



Ralph Lauren’s Fall 2026 Collection a Mix of Romantic Adventure with Metallic Flair 

A model walks the runway during the Ralph Lauren Fall 2026 Collection fashion show in New York, on February 10, 2026. (AFP)
A model walks the runway during the Ralph Lauren Fall 2026 Collection fashion show in New York, on February 10, 2026. (AFP)
TT

Ralph Lauren’s Fall 2026 Collection a Mix of Romantic Adventure with Metallic Flair 

A model walks the runway during the Ralph Lauren Fall 2026 Collection fashion show in New York, on February 10, 2026. (AFP)
A model walks the runway during the Ralph Lauren Fall 2026 Collection fashion show in New York, on February 10, 2026. (AFP)

With more than 50 years in fashion, Ralph Lauren is still looking for adventure. Lauren took his celebrity guests on an adventure into the English countryside Tuesday for his fall 2026 runway show.

Set amid the beaux arts architecture of the Clock Tower building in Manhattan, Lauren delivered a stylish take on softness and strength, pairing luxurious earth-toned rich fabrics with metallic detailing for his latest collection.

Lauren’s ethereal models with their hair flowing behind them strutted on opulent rugs as celebrity guests including actor Anne Hathaway, singer Lana Del Rey and actor Lili Reinhart looked on from antique style chairs; a romantic painted landscape canvas filled the walls surrounding them.

In his show notes, Lauren described his muse as a woman whose style is not defined by time.

“I love the adventure of fashion,” Ralph Lauren wrote, adding his fall collection “is inspired by that kind of renegade spirit and the confidence of the woman who will wear it in her own personal way — to tell her own story.”

The 86-year-old designer has never been one to follow trends but drive them. At Tuesday’s show, accessories added a modern flair from leather gloves paired with a knit off-the-shoulder dress to shimmering silver detailing.

Supermodel Gigi Hadid opened the show in a wool corseted top and maxi skirt accentuated with a silver waist chain. Other models walked the runway with silver belt chains and metallic brooches that stood in an edgy contrast to Lauren’s romantic Victorian tops and tailored jackets. Lauren pinned metallic glimmering brooches to lush wool cloaks that were elegantly draped over models’ shoulders in a show of strength.

In a modern twist on Joan of Arc, Lauren designed a chain mail top that delicately peeked out from underneath one model’s tweed jacket. Lauren complemented the look with a printed scarf and leather pants.

“There were several looks that had this beautiful chain mail kind of detailing,” actor Ariana DeBose told The Associated Press. “What a way to give a woman beautiful armor.”

Even with his contemporary additions, Lauren’s collection still included his signature touches from his riding boots, exquisite tailoring and elegant high neck blouses.

Lauren’s brand is an American staple that continues to prevail in an ever-changing industry. As part of his enduring legacy, Lauren was once again tapped to design the uniforms for Team USA at the Olympic Winter Games in Milan, marking his sixth time designing for the games.

“From being in Italy with the greatest athletes in the world and then coming here to New York City to put on a fashion show that’s so elegant, it’s two different sides of Ralph Lauren and two different sides of what an American company can do to reach the world,” David Lauren, the company's chief branding and innovation officer, said.


Kering’s Fourth-Quarter Sales Fall Less Than Expected as Gucci Slide Continues

The logo of French luxury group Kering is seen at Kering headquarters in Paris, France, February 13, 2023. (Reuters)
The logo of French luxury group Kering is seen at Kering headquarters in Paris, France, February 13, 2023. (Reuters)
TT

Kering’s Fourth-Quarter Sales Fall Less Than Expected as Gucci Slide Continues

The logo of French luxury group Kering is seen at Kering headquarters in Paris, France, February 13, 2023. (Reuters)
The logo of French luxury group Kering is seen at Kering headquarters in Paris, France, February 13, 2023. (Reuters)

Kering reported on Tuesday a slightly smaller-than-expected drop in fourth-quarter sales, as investors await details of CEO Luca de Meo's plans ​to revive the Gucci owner's flagging fortunes.

Sales reached 3.9 billion euros ($4.64 billion), down 3% from the previous year when adjusted for currency swings. That beat analysts' consensus forecast for a 5% drop, according to Visible Alpha.

The revenue drop was 10% at Italian flagship label Gucci, which accounts for most of Kering's profits, versus analyst expectations of a 12% decline.

It ‌was the brand's ‌10th straight quarter of revenue ‌decline.

Finance ⁠Chief ​Armelle ‌Poulou told journalists Gucci saw some improvement at the end of last year in "almost all regions", helped by newly introduced products and handbag sales.

Grappling with weak sales since the maximalist styles of Gucci's former star designer Alessandro Michele fell out of fashion in 2022, Kering has faced heightened investor scrutiny over its high ⁠debt and declining profitability.

Free cash from operations fell by 35% last year ‌when excluding one-off payments from real estate ‍sales, reaching 2.3 billion euros, Kering ‍said.

"For Kering, it's really about (restoring) the broad desirability globally," said ‍JPMorgan analyst Chiara Battistini.

Facing an uncertain business outlook, the group, which also owns Gucci Balenciaga, Bottega Veneta and Yves Saint Laurent, further reduced its store network by 75 boutiques with further closures planned, Poulou said.

The ​earnings underscored the steep challenges Kering faces to catch up with peers even though its shares have ⁠risen around 50% since de Meo's appointment was announced last June.

"2025 did not reflect Kering's true potential or the strength of our brands, but it enabled us to lay the foundations for our future recovery," said Poulou.

Kering's annual operating income reached 1.63 billion euros, less than a third of its 2022 level. Kering's operating profit margin fell to 11% group-wide and 16% at Gucci, down from 28% and 36% three years earlier.

By contrast, LVMH delivered a 22% margin last year amid ‌a broader luxury slowdown, with its leather and fashion division - home to Louis Vuitton and Dior - hitting 35%.


Pieter Mulier Named Creative Director of Versace

(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)
TT

Pieter Mulier Named Creative Director of Versace

(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)
(FILES) Pieter Mulier attends the 2025 CFDA Awards at The American Museum of Natural History on November 03, 2025 in New York City. (Photo by Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA / AFP)

Belgian fashion designer Pieter Mulier has been named the new creative director of the Milan fashion house Versace starting July 1, according to an announcement on Thursday from the Prada Group, which owns Versace.

Mulier is currently creative director of the French fashion house Alaïa, and was previously the right-hand man of fellow Belgian designer and Prada co-creative director Raf Simons at Calvin Klein, Jil Sander and Dior.

In his new role, Mulier will report to Versace executive chairman Lorenzo Bertelli, the designated successor to manage the family-run Prada Group. Bertelli is the son of Miuccia Prada and Prada Group chairman Patrizio Bertelli.

“We believe that he can truly unlock Versace’s full potential and that he will be able to engage in a fruitful dialogue,’’ The Associated Press quoted Lorenzo Bertelli as saying of Mulier in a statement.

Mulier takes over from Dario Vitale, who departed in December after previewing just one collection during his short-lived Versace stint.

Mulier was honored last fall by supermodel and longtime Alaïa muse Naomi Campbell at the Council of Fashion Designers of America for his work paying tribute to brand founder Azzedine Alaïa. Mulier took the creative helm in 2021, after Alaïa’s death.