Fashion is an art, but it is also big business. And our guest for today H&M Group has proven that the two can coexist at scale. 

Since opening its first store nearly eight decades ago in 1947, the Swedish fashion giant has evolved to a network of over 4,000 stores across 79 markets, with online sales available in 60 markets. 

The company prides itself on a simple promise: making great and sustainable designs available to everyone.

Fast forward to 2025, and H&M is seeing strong momentum. In September, the firm reported a bigger than expected rise in third-quarter profit. 

Operating profit from June to August came in at 4.91 billion Swedish crowns (or about US$523 million). That’s up from the 3.51 billion seen a year ago, and well above the 3.68 billion crowns forecasted by analysts in an LSEG poll. 

The numbers come as CEO Daniel Erver embarked on an overhaul of the brand to improve profitability through trendier collections, tighter cost controls and a refreshed marketing strategy. 

But even as H&M celebrates its early success, the broader business environment is shifting. 

US tariffs are weighing on imports to and consumption within the US – the retailer’s second largest market after Germany. 

So how far would that make Asia a bright spot for growth for H&M, and how does H&M intend to compete with other big name players such as Inditex’s Zara, Fast Retailing’s Uniqlo and even e-commerce first players like Shein and Temu?

And perhaps more importantly – which Asian markets hold the greatest promise for the next chapter of H&M’s growth given China’s uneven economic recovery?

On Under the Radar, Money Matters’ finance presenter Chua Tian Tian posed these questions to Saed El-Achkar, President H&M East Asia & Greater China.

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