Fashion brand H&M has reported a Q1 profit boost thanks to the success of its second-hand platform, Sellpy. The company stated that the platform saw a significant increase in sales. This led to a rise in profits for the quarter. H&M acquired a majority stake in Sellpy in 2020. Since then, the company has been integrating the platform into its operations.
The company’s womenswear, COS, and Arket brands sales were also strong in the quarter. The brands have been a focus for H&M as it works to diversify its offerings and appeals to a broader customer base.
Despite the positive results, H&M acknowledged the ongoing challenges posed by the COVID-19 pandemic, including supply chain disruptions and temporary store closures in some regions. The company has implemented various measures to mitigate these challenges, such as increasing its online presence and improving inventory management.
H&M’s CEO, Helena Helmersson, is optimistic about the company’s future prospects. The CEO said that the company’s investments in sustainability and digitalization will help it navigate the current environment and drive growth in the long term.
The positive Q1 profit boost came as a welcome relief for H&M. In recent years, the company has faced criticism for its slow response to changing consumer trends. H&M has also faced increasing competition from online retailers. The company’s focus on sustainability and digitalization is a key part of its strategy. This strategy is expected to remain relevant in a rapidly evolving retail landscape.