Since Daniel Ervér took over as CEO of the clothing company in 2024, the priority has been to get sales going as well as cost control, where, among other things, unprofitable stores are closed down.
For the second quarter in a row, the company is showing progress in that direction. H&M's operating profit for the summer months of June 1 - August 31 was SEK 4.9 billion, far exceeding market expectations of SEK 3.7 billion, and better than the previous year.
On the Stockholm stock exchange, the report also causes the stock to rise sharply.
The report is a receipt that the plan we have set now is starting to take effect. With that said, it's a long journey and we're far from done, says Ervér when TT meets him at the company's headquarters in Stockholm.
Brown - the color of autumn
Behind him hangs the autumn collection, the one that is intended to give further momentum to sales in the coming months. One customer group is absolutely the most important:
The focus has been very much on women from the start. She is our most important customer, she is the one who makes an impact on the entire market and it was important to win her.
Ervér has previously told TT that "when we win her, we can also win her as a mother, partner or however she shops for home decor or when she's going to work out".
What we now see works in general is updated and relevant fashion, he says on Thursday.
If H&M is right, the female consumer will dress in brown shades this autumn, a lot of plaid, elements of faux fur and satin - parts of the company's collection that have now started to be launched.
- When we hit the mark, we often hit it broadly. Then maybe you don't style it in the same way. Similar products can be styled in different ways, says Ervér.
Nascent optimism
From several quarters, it has now begun to be talked about a nascent optimism among consumers. Lower interest rates, inflation being held down and from a Swedish perspective - tax cuts in the upcoming budget, which is expected to contribute to increased consumption. Daniel Ervér is cautiously optimistic:
My perception is that it is still a cautious consumer who has had to endure several years of inflation.
Are there clothes or materials that you see don't work in this kind of economic climate?
No. Rather the opposite, that we are updated to be competitive. Then anecdotally, one can say that in a recession, you rather treat yourself to a unique item than three basic items.
