H&M Fourth-quarter Sales Disappoint Due to Late Black Friday

FILE PHOTO: The logo of fashion retailer H&M is on display outside a store in Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo
FILE PHOTO: The logo of fashion retailer H&M is on display outside a store in Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo
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H&M Fourth-quarter Sales Disappoint Due to Late Black Friday

FILE PHOTO: The logo of fashion retailer H&M is on display outside a store in Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo
FILE PHOTO: The logo of fashion retailer H&M is on display outside a store in Stockholm, Sweden, July 17, 2023. REUTERS/Tom Little/File Photo

Swedish fast-fashion retailer H&M reported weaker-than-expected fourth-quarter sales on Thursday due in part to a late Black Friday, but said sales were up 4% in December and January, indicating a better start to the new fiscal year.
H&M's sales in the fourth quarter to Nov. 30 were 62.19 billion Swedish crowns ($5.65 billion), up 3% in local currencies, a weaker performance than analysts' mean forecast of 63.48 billion Swedish crowns.
H&M shares fell 4.5% at the market open, Reuters reported.
Black Friday was on Nov. 29 last year, and H&M said more of its sales around that key discounting day were reported as revenues in December, hitting quarterly sales by just under 1%. Operating profit margin for the quarter was 7.4%, up from 6.9% a year before, as CEO Daniel Erver, who took over a year ago, said investments in marketing were starting to pay off.
"Strong online sales together with improved product presentation and a more inspiring shopping experience, well-received womenswear collections and effective cost control all contributed to a positive development in the quarter," Erver said in a statement.
In a push to make the H&M brand trendier, Erver has hiked marketing spending and hired pop star Charli XCX to model H&M's autumn collection and to perform at free gigs attended by thousands during London Fashion Week and in New York's Times Square.
But analysts said H&M still had work to do to turn its performance around.
"H&M's Q4 results, albeit calendar impacted, confirm that the step up in marketing efforts is not having an especially significant impact on market share trends," Jefferies analysts said in a note.
H&M said it took a 200 million crown hit to operating profit due to winding down costs as it folds its Monki brand into Weekday to streamline operations. The move, announced in November, will lead to the closure of most Monki stores.
The group has accelerated its store closures over the past years and focused new store openings on growth markets.
H&M had 4,253 stores across all its brands at the end of the 2024 financial year, 116 fewer than a year ago.



London Fashion Week: Master Milliner Stephen Jones Wears Many Hats

A hat made from tempered chocolate is seen on display as milliner Stephen Jones presents his Autumn-Winter 2025-2026 collection in his Covent Garden shop during London Fashion Week in London, on February 21, 2025. (AFP)
A hat made from tempered chocolate is seen on display as milliner Stephen Jones presents his Autumn-Winter 2025-2026 collection in his Covent Garden shop during London Fashion Week in London, on February 21, 2025. (AFP)
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London Fashion Week: Master Milliner Stephen Jones Wears Many Hats

A hat made from tempered chocolate is seen on display as milliner Stephen Jones presents his Autumn-Winter 2025-2026 collection in his Covent Garden shop during London Fashion Week in London, on February 21, 2025. (AFP)
A hat made from tempered chocolate is seen on display as milliner Stephen Jones presents his Autumn-Winter 2025-2026 collection in his Covent Garden shop during London Fashion Week in London, on February 21, 2025. (AFP)

In a millinery in central London, fascinated guests Friday tried on hats of different shapes and sizes, leaning in to smell one made of chocolate, and another with an aroma of autumn.

Legendary British hat-maker Stephen Jones explored the senses for his Autumn-Winter 2025 presentation at London Fashion Week, with hats of satin, tartan, crepe and even glass on display.

"I was thinking about how people connected through hats, and so it's about sight, and taste, and touch," Jones, who also designs hats for Dior, told AFP at his studio in Covent Garden.

Feathers floated atop a delicate fascinator, icy beads dangled down from another headband, and Jones described a black satin flatcap with white piping as "assured" and "fun".

"What is fashion about? Is fashion a uniform? Is fashion self-expression? Can fashion be fun? So that's why this collection came about," Jones said.

The center of attraction was a Willy Wonka-esque top hat made of chocolate with a bite-size hole in its crown, which Jones crafted in collaboration with Paris-based patissiere Jana Lai.

Jones has already had an order for the hat from a "lady who wants to wear it for her birthday party," and said the confectionary head covering can be worn by "anyone".

"Not somewhere too hot though," he mused.

From plush berets for Princess Diana to towering headdresses strutted down Dior runways, Jones's hats have served as the crowning glory of celebrities and designers for over four decades.

His work is currently on display in a retrospective at Paris's Palais Galliera called "Stephen Jones, Chapeaux d'Artiste," which brings together some 170 hats spanning his career.

Jones, 67, was born "near Liverpool, in the middle of nowhere".

"So for me, Paris was always such an exciting place," said Jones, who divides his time between London and Paris.

"Paris has always influenced my work," he added, a customary brown beret balancing on his head.

Jones crafted his first hat when he was a student at London's Central Saint Martins out of a cereal box and scraps from his sister's blouse.

That sense of whimsy and innovation never really went away.

"Everything else can be super serious, but fashion and hats need to be about celebrating life," he said. "Especially at the moment."

For the millinery guru, it was "strange" to be taking part in fashion week at a time of global political uncertainty.

"But that's what fashion does. At least you can control how you get dressed in the morning."

Jones has collaborated with designers from Vivienne Westwood and Jean Paul Gaultier to Maison Margiela and Comme des Garcons, all while gracing the heads of A-listers -- including styling Rihanna in an embellished bishop's mitre for the Met Gala in 2018.

"Hats are so popular because it's like a talisman of something. It's a talisman of hope," said Jones.

"People wear jackets and tailoring and shoes... But to show your individuality, maybe a hat is a very good way of doing that."

Despite dressing a roster of fashion royalty, Jones said he still has not made a hat for Britain's Queen Camilla.

"The Queen hasn't worn my hats yet. Maybe one day I'll make a hat (for her)," said Jones.

After 45 years of presenting collections, how does he keep pulling ideas out of his hat?

"I guess that's my character. I live my life, and put it into a hat."