STOCKHOLM—H&M, the world’s No.2 fashion retailer, launched a 2 billion Swedish crown ($177 million) cost savings drive on Thursday after reporting weaker-than-expected profits.
In Europe, where H&M does the bulk of its business, the Ukraine conflict, record energy prices and high inflation are weighing on consumer confidence, and households are cutting back on spending.
The Swedish group’s third quarter pretax profit fell to 689 million crowns ($60.9 million) from 6.09 billion a year earlier, well below the 2.98 billion expected by five analysts polled by Refinitiv.
CEO Helena Helmersson told Reuters a big part of the savings programme would come from simplifying organisational structures and buying fewer tech services. Less business travel and lower office rents were other aims of the programme, she said….