STOCKHOLM—Fashion retailer H&M reported a surprise operating profit for its first quarter due to a one-off gain and as cost-cutting measures started to bear fruit despite consumers curbing spending.
While H&M showed signs of bringing its costs under control, it still struggled to compete with major rival Inditex, owner of Zara and other brands, as well as rapidly expanding fast fashion online retailers such as SHEIN and Temu.
“The value for money that we provide is really, really important for customers right now,” CEO Helena Helmersson told Reuters in an interview.
Unusually cold weather in many of the Swedish retailer’s key markets held shoppers back from buying spring clothing, the company said, denting its March sales figures….