Budget fashion group H&M has fallen prey to regulatory scrutiny over false claims related to environmental scorecards. The Swedish fast-fashion brand also shut its Shanghai flagship store as a result of disturbances in China. No, seriously – H&M’s been dealing with a lot.
H&M’s website proudly boasted its sustainable fast fashion with environmental scorecards merely to uplift its status quo. These claims turned out to be bogus since they were found to be no more sustainable than comparable garments made by the company and its competitors.
What is more appalling was the fact that the data were the exact opposite of reality.
In another, H&M closed its flagship store in Shanghai – the first store it opened in the country 15 years ago.
Back in 2021, the brand became the target of a Chinese boycott after it decided to stop sourcing from China’s Xinjiang region because of forced-labor allegations there. The city’s strict Covid-19 lockdown also deepened the scars of its business.
Fashionistas must be prepared to shell out more for their favourite piece of fashion. Although they helped raise the forecast-beating profits for H&M without any greed for high discounts, the company is considering raising its prices. The move is in line to combat the rising costs of transport and material.
Pretax profit jumped 33% from the previous year to touch $471 million. Shared went up by 5% after it announced the jump.
Too long? Here’s a one-liner: H&M comes under regulatory eyes over false sustainable fashion claims; shuts down Shanghai operations, and plans to increase prices globally this year.