Category: 3. Business

• Gold prices climb as US fiscal concerns over Trump’s proposed tax bill support bullion gains.
• Fed Chair Powell comments on monetary policy at the ECB Forum, maintaining a data-dependent stance.
• XAU/USD trades near $3,350 after US ISM and JOTS data beat estimates, raising expectations for a September rate cut.

Gold prices are rallying on Tuesday as traders digest remarks from policymakers currently gathered at the European Central Bank (ECB) forum in Portugal.

Focus has been on comments from Federal Reserve Chairman Jerome Powell, who has been facing increasing pressure from US President Donald Trump to reduce interest rates in July.

Despite Fed Chair Powell’s hawkish comments and better-than-expected US economic data, which have helped limit US Dollar losses, XAU/USD continues to trade around $3,350 at the time of writing.

Fed Powell’s comments included, “As long as the US economy is in solid shape, we think that the prudent thing to do is to wait and learn more and see what those effects might be.”

So far, Powell has adhered to the cautious script, but investors are aware that this could shift quickly if the data dictates otherwise.

Additionally, Powell stated that “It’s going to depend on the data, and we are going meeting by meeting,” Powell said. “I wouldn’t take any meeting off the table or put it directly on the table. It’s going to depend on how the data evolve.”

These comments suggest that the Fed is not rushing to cut rates, increasing the potential for a September cut. With the US ISM Manufacturing and JOLTs data beating expectations, a resilient US data remains supportive of a more data-dependent Fed, limiting US Dollar losses.

Global policymakers gather at the ECB forum, a key event for Gold

The focus on Tuesday was on the European Central Bank (ECB) Forum on Central Banking, currently underway in Sintra, Portugal. This rare convergence of the world’s top central bankers offers a critical opportunity for markets to assess the direction of global monetary policy.

ECB President Christine Lagarde, Bank of Japan (BoJ) Governor Kazuo Ueda, Bank of England Governor Andrew Bailey, and Federal Reserve Chair Jerome Powell are currently speaking on monetary policy.

The joint appearance is more than symbolic. Previous Forums have triggered coordinated messaging or revealed stark divergences in policy outlooks that have moved major asset classes, including Gold, currencies, and bonds.

With central banks navigating a delicate balance between inflation control and slowing growth, any nuance in today’s remarks could set the tone for the third quarter. 

Gold daily digest market movers: XAU/USD rallies on monetary, fiscal, tariff concerns

• The ISM Manufacturing PMI is expected to print at 48.8 for June. The June data came in above expectations at 49, rising from 48.5 in May. 
• Job Openings and Labor Turnover Survey (JOLTS), where economists had expected around 7.3 million open positions as of May 31. Instead, the latest report revealed that job vacancies rose by 7.769 million, reflecting a resilient US labour market.
• President Donald Trump’s escalating criticism of Powell, including another sharply worded post on Truth Social on Monday, has raised concerns about the Fed’s independence. 
• Trump’s post read, “Jerome – You are, as usual, ‘too late.’ You have cost the USA a fortune – and continue to do so – you should lower the rate by a lot!” 
• The rhetoric has fueled speculation that Powell may either shift his tone or face replacement. 
• That prospect has pressured real yields lower and driven fresh demand for Gold as a hedge against policy uncertainty and US Dollar weakness. 
• President Trump issued a handwritten note with his signature to Fed Powell on Monday. The letter said that “Hundreds of billions of dollars are being lost! No inflation”. 
• Many now expect a shift toward looser monetary policy, which is putting downward pressure on real yields and making Gold more attractive.
• At the same time, the Trump administration’s proposed “Big Beautiful Bill,” with its estimated $3.3 trillion impact on the deficit, is sparking fears over long-term fiscal health. 
• The bill has drawn fire from across the political spectrum, including from Elon Musk and several Democratic leaders, who warn it could lead to inflation and a weaker US Dollar. Such a backdrop often prompts investors to turn to Gold as a hedge against instability and currency depreciation. The Senate is currently pushing to have the bill approved by Friday.
• With a July 9 tariff deadline fast approaching, the US is focusing on smaller, step-by-step trade deals rather than sweeping agreements, aiming to avoid triggering new tariffs. 
• While partial progress has been made with countries like the UK and China, talks with Japan and the European Union are still unsettled. The EU has shown openness to a blanket 10% tariff but is pushing for exceptions in sensitive sectors such as semiconductors and pharmaceuticals. 
• Meanwhile, President Trump has taken aim at Japan’s trade approach, especially on rice, warning that new tariffs may be imposed if no deal is reached in time.
• Trump expressed his frustration on Monday following a dispute over Japan’s reluctance to import rice from the US, which resulted in the US President stating that Japan has been “spoiled with respect to the United States of America.”
• All of this contributes to an environment where Gold looks relatively safe. Add to that the possibility of technical breakouts and increased buying interest, and it’s no surprise prices are pushing higher.

Gold technical analysis: XAU/USD bounces off trendline support, opening the potential for a retest of $3,400

After falling to trendline support from the January low on Monday, failure to gain traction below $3,250 allowed bulls to regain control of the imminent trend. With the 50-day Simple Moving Average (SMA) currently providing support for the yellow metal at $3,320, XAU/USD is now threatening a break of the 20-day SMA at $3,351. The 23.6% Fibonacci retracement of the April low-high move provides an additional barrier of resistance near $3,371.

The Relative Strength Index (RSI) is currently at 52, rising back above the neutral zone and pointing higher. This suggests a modest bullish bias. With the Gold price threatening the 20-day SMA, a clear break of $3,351 and a move above $3,371 could see prices retest the major psychological level of $3,400.

Gold (XAU/USD) daily chart

If bullish momentum fades and prices slip below $3,300, the 38.2% Fibo level could come into play at $3,292, with a deeper pullback driving Gold to the midpoint of the April move at $3,328.

Lenovo has been named a Champion in the inaugural Global Channel Leadership Matrix cementing its position as a worldwide leader in partner engagement, innovation, and sustainable channel growth.

Canalys, part of Omdia, recognized seven technology vendors  recognized seven technology vendors with Champion status for demonstrating outstanding performance and leadership in global channel ecosystems, including Lenovo alongside AWS, Dell, HPE, NetApp, Palo Alto Networks, and Schneider Electric.

This first global Matrix consolidates regional rankings from Asia Pacific, Europe Middle East and Africa, and North America into a single, worldwide assessment of 24 leading IT vendors. Vendors were required to meet robust thresholds in global revenue and channel mix, demonstrating strategic scale and commitment to partner-led go-to-market models.

Sustained Partner Excellence

Lenovo’s consistent leadership in delivering profitable growth for partners through its globally integrated Lenovo 360 framework has unified the company’s portfolio and people across devices, infrastructure, services, and solutions. With more than ~80% of Lenovo’s commercial business conducted through partners, this recognition marks a pivotal moment in the evolution of Lenovo’s channel-centric model.

“Lenovo’s strong revenue growth over the past 12 months reflects its commitment to a partner-first go-to-market strategy, with over 90% of global revenue generated through the channel and significant expansion in infrastructure and solutions, now accounting for 46% of sales,” said Alastair Edwards, Chief Analyst, Canalys (part of Omdia). “Its focus on sustainability, innovative partner programs like Lenovo 360 Circle, and tailored enablement for verticals such as AI and Education, as well as routes to market like MSPs, further solidify its leadership and momentum in the channel.”

“Being named a global Champion by Canalys is a tremendous honor and validation of our partner-centric mindset,” said Pascal Bourguet, Lenovo’s Global Channel Chief. “We’ve made long-term investments in enabling partner success, from tools that simplify selling and boost profitability to sustainability-focused initiatives like Lenovo 360 Circle. This award reflects the commitment of our global channel teams and the trust of our partners.”

Enabling the Channel of the Future

The recognition comes at a time when channel ecosystems are adapting to rapid shifts in AI, hybrid work, and sustainability priorities. Canalys recognized Champions for forward-looking strategies and partner-centric models focused on co-selling, co-development, and co-delivery.

Through Lenovo 360, partners benefit from a unified platform to build and deliver solutions across customer lifecycles, with added accelerators for as-a-service offerings and sustainability-led innovation. Since its inception, the Lenovo 360 framework has greatly simplified and reduced complexity of partner incentive programs by 63%, delivered more than 57,000 certifications and 12,000 partner accreditations through ‘learn and earn’ training opportunities, and enabled more than 54 ready-to-deploy solutions for partners across 50 markets through the Lenovo 360 Solutions Hub.

Looking ahead, Lenovo is investing in AI-driven growth across the channel with initiatives like Lenovo 360 for AI, featuring a dedicated AI curriculum and tools to help partners build and scale AI practices.

Methodology

The Canalys Channel Leadership Matrix is a comprehensive assessment framework that evaluates the channel performance of 24 IT vendors across all major technologies and regions meeting minimum revenue and channel share thresholds. It is based on their contribution to the global partner ecosystem’s success.

This evaluation relies on two primary inputs:

• Analyst Assessment: Expert scoring of vendors’ channel vision, program execution, M&A activity, portfolio competitiveness, and channel initiatives
• Ecosystem Feedback: Direct input from the partner community through interviews and ratings focused on enablement, sales engagement, and partner experience metrics

Marks & Spencer’s online business should be running “fully” within the next four weeks, its boss has said, as the retailer recovers from a damaging cyber-attack.

The hack forced the retailer to pause customer orders through its website for almost seven weeks, before resuming them last month. However, its click-and-collect services remain suspended, and the full range of clothing and homeware is not available to buy online.

Stuart Machin, the M&S chief executive, told its annual general meeting in London: “I have previously highlighted that it would take all of June and all of July, maybe into August [to resume all of its operations].”

Machin added: “Within the next four weeks we are hoping for the whole of online to be fully on.” Then the company’s focus will be on replenishing its Castle Donington warehouse in the East Midlands, the main distribution centre for its clothing and homeware.

“We’re hoping that by August we will have the vast majority of this behind us and people can see the true M&S,” Machin told shareholders.

He added: “During the incident we chose to shut things down because we didn’t want the risk of things going wrong.”

In the aftermath of the cyber-attack that brought chaos to the department store chain, M&S lost ground to fashion rivals such as Next, Zara and H&M, and has estimated a £300m hit to profits this year.

When asked about M&S losing market share to competitors, Archie Norman, the company’s chair, said this was “at the forefront of our minds”, adding: “We are going to have to win them [customers] back in the autumn.”

Machin said the retailer would use its Sparks loyalty card to try to re-engage customers, for example by offering the usual birthday treat retrospectively to customers whose birthdays had been missed.

He had been in stores every weekend and had tried to reply to as many customers as possible in writing, he added. He also admitted that M&S should improve its customer service.

Machin received £7.1m for the last financial year – which ended weeks before the hack – up nearly 40% on the £5.1m he took home a year earlier, the company said last month.

M&S was also asked whether bonuses for its bosses would be reduced after the cyber-attack. Norman said: “All of our pay is performance-related so of course the financial effect of the incident will be reflected in the bonus.”

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The company’s share price is trading about 13% lower than in mid-April, before the hack.

The Hargreaves Lansdown analyst Susannah Streeter said: “There will be high hopes that M&S can put this unfortunate chapter behind it, and the early signs are that there is pent-up demand, particularly for its summer styles, with many of the popular products sold out online.

“Its strong set of annual results showed the retailer was in a resilient position before the cyber-attackers infiltrated systems. Sales growth in the fashion and home and beauty division reflected improved customer perceptions of value, quality and style. Demand for M&S food remains robust, with increased volumes driving growth.”

All resolutions were passed by shareholders at the hybrid meeting, which was held in person in London as well as online, apart from one brought by campaign group ShareAction. The resolution was not supported by the board but received the backing of 30.7% of investors. It asked M&S to disclose information about its approach to pay for contracted staff, as well as a cost-benefit analysis of setting the real living wage across its workforce.

The company said all its employees were “paid the living wage or above and we attach great importance to ensuring that subcontracted employees are appropriately paid and treated as part of the M&S family”.

Press release

1 July, 2025

Second quarter (1 March 2025 – 31 May 2025)

• Sales in local currencies increased by 1 percent in the second quarter, with 4 percent fewer stores at the end of the quarter compared with the same point in time last year. Excluding these closures, sales increased by 3 percent. Converted into SEK, net sales amounted to SEK 56,714 m (59,605). Net sales in SEK were negatively affected by a currency translation effect of around 6 percentage points due to the strengthened Swedish krona.
• Gross profit amounted to SEK 31,425 m (33,569), which corresponds to a gross margin of 55.4 percent (56.3). The gross margin was negatively affected mainly by external factors such as a more expensive US dollar and high freight costs, which increased the cost of purchasing for the second quarter, but also by the company’s investments in the customer offering. The external factors that had a negative impact on purchasing in the first half of the year are turning positive for the second half of the year.
• Selling and administrative expenses amounted to SEK 25,489 m (26,446). In local currencies these expenses increased by 2 percent.
• Operating profit amounted to SEK 5,914 m (7,098), corresponding to an operating margin of 10.4 percent (11.9). The decrease in operating profit was mainly attributable to the lower gross margin and negative currency translation effects.
• The result after tax amounted to SEK 3,962 m (5,064¹), corresponding to SEK 2.48 (3.15¹) per share.
• Cash flow from operating activities amounted to SEK 8,528 m (12,600). Cash and cash equivalents plus undrawn credit facilities were SEK 35,828 m (42,572).
• The composition of the stock-in-trade is good. During the quarter the stock-in-trade developed in a positive direction with a significantly lower growth rate of 1 percent compared to the first quarter’s increase of 11 percent in local currencies. At the end of the second quarter the volume of goods was lower than at the same point in time last year. Higher purchasing costs explain the increase in stock-in-trade compared with the previous year.

First half-year (1 December 2024 – 31 May 2025)

• In local currencies net sales increased by 1 percent in the first half of the year. Converted into SEK, the H&M group’s net sales amounted to SEK 112,047 m (113,274).
• Gross profit amounted to SEK 58,594 m (61,224). This corresponds to a gross margin of 52.3 percent (54.0).
• Selling and administrative expenses amounted to SEK 51,427 m (52,010). In local currencies these expenses increased by 1 percent compared with the previous year.
• Operating profit amounted to SEK 7,117 m (9,175), corresponding to an operating margin of 6.4 percent (8.1). The decrease in operating profit was attributable in full to the lower gross margin, which was negatively affected by external factors such as a more expensive US dollar and higher freight costs, but also by markdowns and investments in the customer offering.
• The result after tax amounted to SEK 4,541 m (6,295¹), corresponding to SEK 2.85 (3.91¹) per share.
• Cash flow from operating profit amounted to SEK 12,729 m (16,567).
   
• The H&M group’s sales in the month of June 2025 are expected to increase by 3 percent in local currencies compared with the same month the previous year. The sales increase of 3 percent is impacted by a negative calendar effect of around one percentage point.
• Environmental organisation Stand.earth rated the H&M group as the best company in the fashion industry for the group’s work to phase out fossil fuels. The H&M group gained the highest overall score among leading brands in the fashion industry for its climate efforts.
• The annual general meeting on 7 May 2025 resolved to authorise the board to decide on buybacks of the company’s own class B shares in the period up to the 2026 annual general meeting for the purpose of adjusting the company’s capital structure and enabling purchases of shares for the company’s share-based incentive program. The board of directors has made the decision to buy back the company’s own class B shares to ensure the delivery of class B shares to the participants in the company’s long-term incentive program (LTIP). The cumulative number of shares that can be purchased is 1,100,000 shares, for a maximum cumulative amount of SEK 175 m.
• H&M is opening its first stores and online in Brazil, a country with a population of more than 200 million, early in the second half of 2025.

“Our plan, with its focus on the product offering, the shopping experience and brand, is again confirmed by the progress we see. The positive development in important areas such as online, H&M womenswear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development,” says Daniel Ervér, CEO.

1. See note 5.

Comments by Daniel Ervér, CEO
 
Our plan, with its focus on the product offering, the shopping experience and brand, is again confirmed by the progress we see. The positive development in important areas such as online, H&M womens-wear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development.

Sales in local currencies increased by 1 percent in the second quarter, with 4 percent fewer stores at the end of the quarter compared with the same point in time the previous year. Excluding these closures, sales increased by 3 percent. Moreover, the quarter is to be seen in light of the fact that the second quarter of 2024 was a strong quarter with a sales increase of 3 percent.

The quarter’s result was negatively affected by higher purchasing prices as a result of a more expensive US dollar and higher freight costs, but also by the fact that we have continued to invest in the customer offering. Investments made to strengthen our customer offering and give customers even more value for money. The negative external factors that increased the costs of purchasing for the first half of the year are turning positive for the second half of the year.

Our plan, with its focus on the product offering, the shopping experience and the H&M brand, is confirmed by the progress we see in key parts of the business. With the customer offering at the centre, we have further strengthened the organisation’s focus on product and customer experience. The improvements implemented in online, H&M womenswear and H&M Move, together with increased product availability and closer collaboration with our suppliers, have continued to bring positive results. Portfolio brands also grew in the quarter and COS has developed particularly well. Some measures have a faster impact than others, but the direction is clear and during the year we continue to implement improvements in other parts of the business.

Our upgraded digital store is now rolled out and the response from customers is positive. In our omni-model we continue to integrate our physical and digital sales channels that complement and strengthen each other. We also continue to expand in growth markets. We look forward to opening both online and physical stores in Brazil in the second half of the year, and taking H&M’s business concept – fashion and quality at the best price in a sustainable way – to a country that has a population of more than 200 million and a great interest in fashion.

The integration of sustainability into our daily operations continues to deliver results. The climate and environmental organisation Stand.earth ranks H&M as number one among 42 fashion companies in terms of reducing climate impact. 

In uncertain times with cautious consumers we monitor macroeconomic and geopolitical developments closely and continuously adapt both the customer offering and the business to meet our customers’ needs in the best way. We continue to strengthen the product offering and the experience both online and in our stores. With a clear plan, a strong financial position, good cost control and committed employees, we see good opportunities for long-term, sustainable and profitable growth.
 

Communication in conjunction with the six-month report
 
The six-month report, i.e., 1 December 2024 – 31 May 2025, will be published at 08:00 CEST on 26 June 2025, followed by a combined press and telephone conference at 09:00 CEST for the financial market and media, hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg. A presentation of the report followed by a Q & A session will be held in English.

Location: H&M’s head office in Stockholm, Mäster Samuelsgatan 49, 3rd floor, Ljusgården. The event will be broadcasted online and questions can also be asked by telephone. For log in details please register: https://app.webinar.net/vwELGVnGex6 
 
To book interviews for media in conjunction with the full-year report on 26 June 2025, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.

Please note that the combined press and telephone conference starts at 09:00 CEST. Also note that there will not be a separate telephone conference in the afternoon CEST.

Contact

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46 8 796 55 00, e-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220

For more information about the H&M group visit hmgroup.com.

Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CEST) on 26 June 2025. This interim report and other information about the H&M group are available at hmgroup.com.
 
H & M HENNES & MAURITZ AB (PUBL) was founded in Sweden in 1947 and is listed on Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. The group’s brands are H&M (including H&M HOME, H&M Move and H&M Beauty), COS, Weekday (including Cheap Monday and Monki), & Other Stories, ARKET, Singular Society and Sellpy. The group also includes several ventures. For further information, visit hmgroup.com.

Today, at our global Conversations conference in Miami, we’re introducing updates to help make WhatsApp the go-to place for doing business.  

Streamlining Marketing Across WhatsApp, Facebook and Instagram

We’re streamlining how businesses can create and manage their marketing strategy across WhatsApp, Facebook and Instagram – all in Ads Manager. Now, businesses of all sizes can use the same creative, setup flows and budgets in one central place. Once onboarded, businesses can upload their subscriber list and either manually select marketing messages as an additional placement or use Advantage+, and our AI systems will then optimize budgets across placements to maximize performance. Once available, businesses interested in creating ads in Status will be able to do that from Ads Manager too.

Expanding AI Support

As businesses attract more customers, they need additional support responding to an influx of chats. This is where AI can help. We’re exploring a Business AI that can make personalized product recommendations and facilitate sales on any business’ website – and then follow up with customers to answer questions or provide updates right in a WhatsApp chat. And starting soon, we’ll expand Business AIs to more businesses in Mexico. 

Adding Calling and Voice Options

There also might be times it’s helpful to provide additional support to customers beyond just a text. In the coming weeks, larger businesses using the WhatsApp Business Platform will be able to receive a call from a customer when they want to talk to someone live, or call a customer directly once they’ve asked to hear from you. And starting soon, we’ll also make it possible to send and receive voice messages for additional support, or make a video call which can be helpful for things like a telehealth appointment. Bringing calling and voice updates to the WhatsApp Business Platform will help people communicate in a way that works best for them and paves the way for AI-enabled voice support in the future. Businesses interested in getting started with calling on the WhatsApp Business Platform can work with one of our partners.

We look forward to hearing how these updates help businesses strengthen relationships with their customers and increase efficiency.