H&M profits spring back to life as it seeks to fight off Chinese fast fashion rival Shein

Fashion giant H&M says it has seen a positive response from shoppers to its spring collection as profits rise.

Chief executive Daniel Erver said it was ‘on the right track’ as it seeks to maintain its market share amid the rapid growth of fast fashion rivals such as China’s Shein.

Net sales dipped by 2 per cent for the quarter to February 29, compared with the same period last year, but are up 2 per cent so far in March. It recorded better-than-expected operating profits of £155million, which were up from £54million a year earlier.

Erver said: ‘Thanks to the investments being made in tech, the supply chain and sustainability, combined with continued cost control, committed colleagues and a long-term perspective, we see good opportunities for profitable and sustainable growth.’