Shoppers Embrace H&M’s Full Prices, Driving Higher Sales

Fashion retailer H&M says it expects to raise prices in the coming year following a report that shows its shoppers don’t mind paying full price.

“The H&M group’s sales increase in the quarter is a result of well-received collections with increased full-price sales and lower markdowns,” CEO Helena Helmersson said in the company’s six-month earnings report Wednesday (June 29).

That report showed the Swedish company’s net sales increased by 20% during the six-month period from Dec. 1, 2021 to May 31, 2022.

In an interview with Reuters, the chief executive added that H&M would most like raise prices through the remainder of 2022, though those increases would vary from market to market.

Learn more: Consumers Pay Full Price for Brands That Make Them Happy, Tommy Bahama Parent Says

As PYMNTS noted in March, it’s unusual — in the age of inflation — to hear a retailer talk of shoppers paying full prices at a time when many stores are offering discounts.

At that time, it was Oxford Industries, owner of clothing brands such as Tommy Bahaham and Lilly Pulitzer.

“Each of our happy, upbeat lifestyle brands … had its best year ever in 2021,” CEO Thomas Chubb said at the time, noting that the full-price trend was especially robust in its direct-to-consumer (D2C) businesses, which make up 80% of its sales.

Read more: Shoppers Return to H&M Stores as COVID-19 Fears Subside

Earlier this month, PYMNTS reported that H&M saw a bigger-than-anticipated sales boost for the second quarter of fiscal 2022 thanks to the lifting of pandemic-related restrictions, which brought shoppers back to its brick-and-mortar stores.

And the company said Wednesday it still faces its share of hurdles, including supply chain troubles, increased inflation, and the ongoing Russia-Ukraine conflict.

“As a direct consequence of the challenges in the world around us we are carrying out extensive work to prioritize initiatives, redistribute resources and ensure continued good profitability,” Helmersson said in the news release.