H&M Must Source More Near Main Markets to Beat Tariffs, CEO Says
(Bloomberg) -Sveç fast-fashioned Retaacker Hennes & Mauritz EU complexes the trade of US tariffs and geopolitical turmoil, while accelerating the efforts of producers to welded goods closer to the main markets.
In his interview on Thursday, our shift in general, not primarily for Europe, but also Latin America and the United States by taking closer production options to reduce our delivery time and to increase our flexibility, “he said. “This strategy is now we need to increase its speed to find more relevant and more alternative suppliers with all the changes we see.”
In Bangladesh and other Asian countries, with its large production capacity, H&M – Inditex SA’s competitors such as Zara, such as Zara – was forced to take potentially higher prices for consumers. However, Zara supplies more goods that are closer to Europe from places like Türkiye and Morocco.
According to Erver, H&M increased and reduced prices to stay competitive. “In some cases we decided not to order because we cannot produce them at a competitive price point,” he said.
The CEO saw that tariffs and trade agreements have changed almost daily this year, and the company closely watched how both competitors and consumers travel on taxes, “Now it is not the time to make big, strategic changes, but rather granular, rather granular.”
H&M shares increased up to 7.9% in the Stockholm process on Thursday – the biggest gain since April – retailer, analysts, a little more prominent than the estimates of the profit, women’s fashion and sportswear demand.
After Zara made a quiet start to the summer season, expectations were concluded.
Earlier last year, Erver, a company that took over the CEO business, is trying to revive H&M after years of sluggish growth. He estimated that the gross margin would heal in the second half, as head winds began to return, such as negative currency movements and expensive load rates.
With the help of Jonas Ekblom.
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