H&M in spotlight as cost-cutting gathers pace at fashion retailer
H&M has announced a plan to shut more than a fifth of its stores in Spain and lay off as many as 588 people.
Swedish fashion retailer H&M is under pressure to prove to investors it can turn its fortunes around and fend off fierce competition from fast-fashion rivals such as Zara, whose sales are rising, and China-founded Shein, set to go public this year.
H&M, which sold more than €23bn in clothing and accessories in its 2023 financial year, aims to reach an operating margin of 10% by the end of 2024. Faced with falling sales, the retailer, with around 4,300 global stores, is intensifying cost-cutting, prioritising profitability over revenues.
