H&M beat earnings expectations for the summer quarter. The business made a pretax profit of roughly $260 million, while analysts had thought it would barely break even, WSJ reported. The same thing happened at Zara-owner Inditex, the world’s largest clothing retailer by market value, and fast-fashion chain Primark, that both reported better-than-expected summer profit.
- Digital makeover at landlords’ expense: The crisis has handed retailers leverage with landlords too. H&M negotiated rent cuts of up to 30% in certain markets and plans to close 5% of its 5000 stores in 2021 as it reverses decades of expansion. Inditex will shrink its physical network by a more dramatic 12% over the next two years as more sales move online. [WSJ]