The business also announced that its nominating committee has nominated Helena Saxon to the board as a new board member. Saxon is now the financial director of the Swedish investment group Investor AB and a member of the board of directors of the SEB bank. He will replace Skype founder Niklas Zennström, who did not want to be re-elected.
Management pointed out that it continues to closely monitor developments in the Red Sea, where Yemeni rebels have been attacking merchant ships since last year. Part of the vessels therefore avoid the area and prefer to choose a longer and more expensive route around the southern tip of Africa on the route between Asia and Europe. The company said it is trying to minimize the impact on the availability of its products as well as keep costs under control.
Operating profit for the first quarter exceeded the estimates of analysts, who estimated it at 1.43 billion Swedish crowns on average, according to LSEG. Net sales fell by roughly two percent year-on-year to SEK 53.7 billion, but the market expected a more significant decline. H&M shares thus started today’s trading with a growth of more than 13 percent.
New CEO Daniel Ervér said the spring collection was well received by customers. According to him, this month’s sales show about a two percent increase. The main rival of H&M is the Spanish company Inditex, which owns the Zara brand and others.
Chinese clothing chain Shein wants to go public in the US
Economy
