Archive · 26 Jun 2025
H&M to Source More Near Main Markets Due to Tariffs
H&M, a clothing company, is changing where it gets its clothes from.
They're moving some production closer to places where they sell the most clothes, like Europe and the US.
This is because of things like tariffs (extra taxes on imported goods) and problems around the world that make it harder to trade.
The company's boss, Daniel Erver, wants to be quicker and more flexible.
H&M has been adjusting prices to stay competitive.
Despite some challenges, the company's profits went up recently.
The CEO is trying to make H&M do better after things haven't been going so well.
He believes profits will improve in the future.
H&M plans to source more goods from regions closer to key markets.
The move is in response to US tariffs and geopolitical instability affecting trade.
CEO Daniel Erver says the company needs increased flexibility and reduced lead times.
H&M's shares rose after reporting profit, which exceeded analyst estimates.
Erver is working to revitalize H&M after a period of slower growth.
- Who
- H&M, led by CEO Daniel Erver.
- What
- H&M is shifting its sourcing strategy to reduce lead times and increase flexibility.
- When
- The shift is currently underway.
- Where
- Primarily focusing on locations closer to Europe, Latin America, and the USA.
- Why
- To mitigate the impact of US tariffs, geopolitical instability, and improve competitiveness.
Retailers dealing with changing tariffs:
Competitive Landscape:
Sourcing Strategies
Retailers dealing with changing tariffs:
H&M and similar companies are navigating changing tariffs.
Competitive Landscape:
Zara, Inditex sources goods closer to Europe.
- Company
- Hennes & Mauritz AB (H&M)
- CEO
- Daniel Erver
- Reason for Shift
- US Tariffs, Geopolitical Turmoil
- Share Performance
- Up 7.9% in Stockholm trading
- Share Performance Reason
- Reported profit slightly above analyst estimates
- Profit Focus
- Women's fashion and sportswear