STOCKHOLM: Swedish clothing giant Hennes and Mauritz (H&M) Thursday announced the launch of its eighth fashion brand as tough market conditions in the US and Central Europe hurt profits.
The company reported a 3.4 percent drop in net profit in the December to February period, the first quarter of the company’s financial year, due to the combination of a slower than expected rise in revenues and seasonal discounts.
“To meet the rapid change that is going on in fashion retail we need to be even faster and more flexible in our work processes, for example as regards buying and allocation of our assortment,” CEO Karl-Johan Persson said in a statement.
H&M posted a net profit of 2.45 billion kronor (256 million euros, $275 million), while turnover was up eight percent to 46.98 billion in the same period.
Sales increased by four percent in local currencies, but the group has a target of 10 to 15 percent per year.
“For fashion retail in general, market conditions were very tough in many of our large markets in central and southern Europe and in the US, and this was reflected in our sales,” Persson said.
H&M’s share price dropped in response to the announcement, falling by 5.7 percent on the Stockholm stock exchange, vastly underperforming an overall market down just 0.8 percent.
The new brand, ARKET, will be launched in the third quarter, with the first store to open in London followed by Brussels, Copenhagen and Munich and online operations in 18 European markets, the group said.
It will offer clothes for men, women and children and household products, which will be more upscale than H&M, and each store will include a coffee shop inspired by Nordic kitchen and cuisine.
The group also operates Swedish brands such as Cos, & Other Stories, Monki, Weekday and Cheap Monday, whose sales continue to grow both online and in stores.
H&M launches new upmarket brand as profits slow
H&M launches new upmarket brand as profits slow
Arab models share festive red looks for holiday season
- Bella Hadid and others post images on social media
- Stars promote their labels and fashion collaborations
DUBAI: Several Arab models, including Bella Hadid, Gigi Hadid Imaan Hammam and Shania Shaik, have been sharing holiday-themed looks on social media, many featuring red tones.
US Dutch Palestinian supermodel Hadid has been promoting holiday gift sets from her fragrance brand Orebella. In one image shared on Instagram, she wears a red off-the-shoulder top paired with denim jeans, accessorized with red boots and red-tinted glasses.
Her holiday sets include the brand’s skin perfume collection, and a travel-size duo featuring Salted Muse and Nightcap.
Nightcap, launched in August, is reportedly a homage to Hadid’s favorite horse from her childhood. The fragrance has been characterized as warm and spicy, with notes of ginger, cardamom and vanilla.
Salted Muse features top notes of sea salt, pink pepper and carbon dioxide extract, followed by heart notes of olive tree accord, fig and lavender. Its base notes include cedarwood, sandalwood and amber.
Bella’s sister, Gigi Hadid, also released a winter collection for her clothing brand Guest in Residence, featuring sweaters, beanies, scarves and socks in seasonal colors.
Meanwhile, Hammam, a Dutch Moroccan Egyptian model, appeared in red as part of a festive campaign for Estee Lauder, a label she has worked with on multiple occasions.
The model shared images from the campaign on Instagram, showing her posing in a red gown alongside Karlie Kloss and Paulina Porizkova, set against oversized holiday decorations and baubles.
Hammam was announced as a global ambassador for the US cosmetics company in 2023.
She spoke about the appointment in a recent interview with Estee Lauder: “This is the most amazing opportunity to represent and empower girls around the world.
“As a Moroccan-Egyptian woman, I am incredibly honored to take on this role with such a long-standing brand that promotes diversity and women’s empowerment in the beauty space.”
Shaik, an Australia-born model of Saudi, Pakistani and Lithuanian descent, also shared festive content with her followers. In one Instagram post captioned “Holiday party season,” she wears a sparkly maroon halter-neck dress with a plunging neckline.
The post took the form of a “get-ready-with-me” carousel, offering a glimpse of the beauty products she used ahead of a holiday event.
