After scrutiny over the human rights abuse, the company pledged to amend its relationship with China
The world’s second-biggest fashion retailer reported a
quarterly loss of $159 million in Q1 2021. Despite the loss, the figures came
ahead of the consensus.
H&M’s
results came when the retail is facing backlash after it expressed its concern
about the alleged human rights abuses in the Xinjiang province. After the
concerns were voiced, the company announced that it would no longer source
cotton from the region. China is the company’s top clothing supplier and its
fourth-largest market by sales.
Still, H&M is trying to improve its relationship with
Chinese customers, colleagues, and business partners. “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,” read the company’s statement.
For the future, H&M announced that it would not propose
dividends, but it expects good figures in the second half of 2021.
After the news hit the wires, H&M stock price fell 2.4%.
Sources: reuters.com, hmgroup.com
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