H&M to Cut Costs as Profits Hit by Inflation, Cautious Shoppers

H&M to Cut Costs as Profits Hit by Inflation, Cautious Shoppers
H&M logo on a shop in Riga, Latvia, on Jan. 30, 2020. Ints Kalnins/Reuters
Reuters
Updated:

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.