H&M confirms commitment to China after backlash

STOCKHOLM (Reuters) – H&M said on Wednesday its commitment to China remained strong and it was dedicated to regaining shoppers’ and partners’ trust following a recent backlash in the country against comments it made in 2020 on China’s Xinjiang region.

“We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China,” the Swedish fashion retailer said in a statement on its website.

“By working together with stakeholders and partners, we believe we can take steps in our joint efforts to develop the fashion industry, as well as serve our customers and act in a respectful way,” it said.

H&M swings to loss in first quarter

H&M reported a quarterly loss on Wednesday and said that it was dedicated to regaining shoppers’ and partners’ trust in China following the recent backlash in the country after comments it made last year on the Xinjiang region.

The world’s second-biggest fashion retailer is under fire from consumers and officials in China after an H&M statement from 2020 began circulating in social media expressing concern over reports of forced labour in Xinjiang, saying it would no longer source cotton from the region.

It said on its website that its commitment to China remained strong and it was dedicated to regaining the trust and confidence of customers, colleagues, and business partners in China.

H&M reported a pretax loss for the December-February period, its fiscal first quarter, of 1.39 billion crowns ($159 million) against a year-earlier profit of 2.50 billion. Analysts polled by Refinitiv had on average forecast a 1.41 billion crown loss.

Sales in March 1-28 were up 55% measured in local currencies.

H&M said it would not propose a dividend at its annual general meeting but saw good prospects of one in the second half of the year.

($1 = 8.7416 Swedish crowns)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.