H&M posts Q1 profit, sales increase by 12 percent

Image: H&M flagship store on London's Regent Street In the first quarter the H&M group’s net sales in SEK increased by 12 percent to 54,872 million Swedish krona. In local currencies the increase was 3 percent. Excluding Russia, Belarus and Ukraine, the company said, the increase was 16 percent in SEK and 7 percent in local currencies. Operating profit amounted to 725 million Swedish krona compared to 458 million Swedish krona, corresponding to an operating margin of 1.3 percent, boosted by consolidating the earnings of its Sellpy second-hand platform. “The H&M group continues to stand strong with a robust financial position, stable cash flow and a well-balanced inventory. The start of the year shows that we have taken further steps towards the goal of achieving an operating margin of 10 percent already next year,” said Helena Helmersson, CEO of H&M in a statement. H&M’s consolidates second-hand platform Sellpy into the group Sellpy, a European second-hand platform, the company added, is being consolidated into the H&M group from the first quarter. “Ten years ago we began investing in Sellpy, which in a short time has become one of Europe’s largest second-hand platforms. Now we are consolidating the company into the group, which visualises its value and generates a remeasurement effect of around 1 billion Swedish krona in the quarter. We have more than 25 other promising companies in our portfolio such as Renewcell, TreeToTextile and Smartex, to name just a few,” added Helmersson. Sales for portfolio brands in the first quarter increased by 19 percent in SEK and by 11 percent in local currencies. Stock-in-trade decreased by 16 percent currency-adjusted compared with the previous year. Gross margin for the quarter was 47.2 percent compared to 49.3 percent in the same quarter last year. Result after tax was 540 million Swedish krona, corresponding to 0.33 Swedish krona per share. H&M expects March sales to increase by 4 percent For the period from March 1 to March 31, 2023 sales in local currencies are expected to increase by 4 percent compared with the same period last year. The company said that the start of the spring season has been delayed in many important markets as a result of cold weather. The spring collections have been well received where the weather has warmed up. Commenting on the outlook, Helmersson said: “The start of the year shows that we have taken further steps towards the goal of achieving an operating margin of 10 percent already next year.” At the annual general meeting to be held on May 4, 2023, the board’s proposed ordinary dividend of 6.50 Swedish krona per share, to be paid in two instalments and the authorisation allowing it to buy back the group’s own B shares in the period up to the 2024 annual general meeting for a maximum of 3 billion Swedish krona, will be discussed.
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Barbour and Palm Angels to launch reimagined Bedale Wax Jacket

Image: Barbour's reimagined Bedale wax jacket. Credit: Barbour. Heritage brand Barbour teamed up with fashion label Palm Angels to create a new version of its iconic Bedale wax jacket. The equestrian inspired, lightweight item from 1980 will come in a remodelled design, leaning onto the idea of “high visibility vests and coats often worn in North America when undertaking country pursuits”, as described in the official release. The jacket will come in three bright colours - hot pink, scarlet ibis and vibrant yellow, with Palm Angels’ logo screen printed on the backside. The collaboration reflects the work of two rather contrasting brands, merging tradition and craftsmanship with bold and distinctive features. It combines a broad exploration of freedom and individuality while keeping a “British country twist”. On March 31, the collection will launch on both brands’ web shops as well as on Farfetch. In London, the items will be available in Barbour’s stores in Covent Garden and Carnaby Street and selected stockists, such as Flannels and Selfridges. On top of that, the line can be found in the LF Mall in Korea and on Barbour’s Tmall platform in China.
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Burberry invests in supply chain and acquires Italian outerwear manufacturer

Image: Burberry AW23 via Spotlight Launchmetrics Burberry is aiming to strengthen its supply chain with the acquisition of an Italian outerwear manufacturer. The British luxury brand acquired the technical outerwear facility from Pattern SpA, a longtime supplier whose business activities include engineering and production of luxury garments. Burberry acquired the company for 21 million euros in order to guarantee production capacity, as well as build technical outerwear capability, reported WWD. Burberry currently manufactures its iconic waterproof gabardine trench coats in Castleford and Keighley, in Yorkshire, England. Embedding sustainability into Burberry's supply chain Burberry said it worked with Pattern for two decades to produce luxury ready-to-wear including quilts and downs, at the company's product development site in Turin, Italy. Burberry said the acquisition would further embed sustainability into its value chain as well as complement its production facilities at home. Approximately 70 of Pattern’s employees in Turin will join Burberry on completion of the acquisition, expected later this year. Pattern will continue to operate the parts of the business not included in the transaction. Jonathan Akeroyd, CEO, commented: “This strategic investment is an important next step in bringing our outerwear category to full potential. It will enhance our capabilities, building on our strong foundations in the UK, and provide greater control over the quality, delivery and sustainability of our products. It’s an exciting development and I am delighted to welcome our new colleagues on board.” In 2018 Burberry acquired a leather goods manufacturer in Florence, Italy, which has since become a strategic hub for its leather products, covering all areas from prototypes to the finished product.
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LVMH Prize 2023: Nine finalists announced

Image: LVMH, Facebook The finalists for the annual LVMH Prize have been announced by the luxury conglomerate. Twenty-two semi-finalists were initially selected from among 2,400 candidates, before that number was further narrowed down to just the nine below: Aaron Esh (UK, menswear); Bettter (Ukraine, womenswear); Burc Akyol (France, womenswear, menswear, and genderless collections); Diotima (Jamaica, womenswear); Luar (US, womenswear, menswear, and genderless collections); Magliano (Italy, menswear); Paolina Russo (France, womenswear); Quira (Italy, womenswear); and Setchu (Japan, genderless collections). On June 7, the shortlisted designers will present their designs to a jury at the Louis Vuitton Foundation, and a winner will be chosen for the LVMH Prize and the Karl Lagerfeld Prize. Cash prize and mentorship up for grabs The winner of the LVMH Prize for Young Fashion Designers will receive a 300,000 euro endowment and a tailored mentorship by various teams at LVMH, while the recipient of the Karl Lagerfeld Prize will be awarded a 150,000 euro allocation and a one-year mentorship by LVMH teams. Additionally, in collaboration with fashion schools, the event will recognise three newly graduated students who will receive a 10,000 euro endowment with their school, and will join the design studio of one of LVMH’s luxury houses for one year. Members of the jury this year include Jonathan Anderson, Maria Grazia Chiuri, Nicolas Ghesquière, Marc Jacobs, Kim Jones, Nigo, Stella McCartney, Silvia Venturini Fendi, Jean-Paul Claverie, Sidney Toledano, and Delphine Arnault. Arnault said in a statement: “The semi-final of the tenth edition of the Prize has highlighted a great maturity in the approach and work of the designers. Cultural diversity, celebration of traditional crafts and creative audacity define this selection. Naturally, the finalists are fully engaged in dealing with environmental issues and play with the boundaries between menswear and womenswear. “Their expertise, their creativity, their uniqueness and their commitment have truly impressed me. I would like to thank all the experts for their enthusiasm, their involvement and the attention they dedicated to discovering and appraising the work of the designers who took part in the semi-final. The jury members and I look forward to seeing the nine shortlisted designers at the final at the Louis Vuitton Foundation.”
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Balmain and Beyoncé debut Renaissance haute couture collaboration

Image: Balmain Renaissance Couture Balmain has launched an haute couture collaboration with Beyoncé. The French luxury house said it is the first collaboration with and exclusively for a Balmain muse. Creative director Olivier Rousteing found inspiration in the singer’s Renaissance album, together creating 16 designs, one for each track. It is the first haute couture collection where a Black woman had full creative license. Mr Olivier Rousteing is also the first Black man to lead all collections at a luxury house. With looks unveiled in the April issue of French Vogue, Mr Rousteing said Renaissance is more than an album, “it’s freedom, strength, love and a battle for a better future,” as well as sharing the arts of music and fashion together. With initial sketches and a concept, Mr Rousteing approached Beyoncé’s head stylist, Marni Senofonte. It took five months for the team to edit, design and craft the collection, with the atelier moving to Los Angeles in January to finish the final fittings. In a statement Balmain said the collection plays with Balmain house signatures, classic Parisian savoir-faire and a wide range of unexpected materials and techniques to translate Renaissance’s joy and genius into a couture collection that makes clear that something powerful can result when music and fashion are combined into one unified whole. One of the looks, a 'fireworks' dress, in black velvet embroidered with pink feathers, is a testament to craftsmanship. Mr Rousteing said the artisans at Maison Fevrier, the last feather atelier in the world, were ‘pushed hard’ to do something that they had never done before, despite their history of creating the most astounding plumage for Paris’ spectacles de cabaret and haute couture collections.
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Goi Goi founders reacquire retailer from JD Sports

Image: Daniel Gual/URW The founders of streetwear brand Goi Goi are the latest to retake their business from JD Sports Fashion after the conglomerate put a percentage of its portfolio up for sale. Goi Goi was founded in 1987 by Anthony and Christopher Donnelly and was initially acquired by JD back in 2013 when it fell into administration. According to Drapers, the Donnellys have now bought the brand back “for a nominal sum”. Speaking to the media outlet, Anthony said: “It’s [been] 17 years since we had our brand back independently. We pity those less fortunate than us who lost their brands [as they] couldn’t buy their brands back.” It comes as JD Sports continues to reevaluate its business within the independent menswear sector, with it recently announcing the intention to refocus itself on its premium sportswear division. As part of this move, the company recently offloaded its stakes in 15 brands to rival Frasers Group, including Tessuti, Missy Empire and Cricket. Rascal Clothing, which was part of the initial deal, pulled out and instead was similarly snapped up by the brand’s founder Bill Wingrove. Since then, JD has embarked on an ambitious retail expansion strategy, announcing plans to open between 250 to 350 stores a year over the next five years.
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