H&M to double investments this year to ramp up tech offerings

H&M is doubling its investments this year as it looks to ramp up its technology offerings and significantly grow its sales by 2030.

The world’s second largest clothing retailer will invest $1.1 billion in order to fulfil its goals.

Its spending will focus on technology, supply chain, renewable energy and sustainable materials after its recent initiatives managed to mitigate the Covid-related effects of its supply chain.

“We ended the year strongly, with sales back at the same level as before the Covid pandemic and with profitability better than it has been for several years,” H&M chief executive CEO Helena Helmersson said.

READ MORE: Nike, Primark, H&M accused of “greenwashing” as report reveals recycled polyester just as damaging to environment

“Now that we are back to a more normalised situation with a strong financial position and good profitability, we can fully focus on growth again.”

The company’s share price hiked 5% on the back of the news.

H&M’s pretax profit the company’s fiscal fourth quarter leapt by 64% from a year earlier to 6.00 billion crowns ($640 million).

The figure beat analysts projections of 5.43 billion crown profit.

While attempting to double its sales this year, it is also hoping to halve its carbon footprint, and to reach an operating margin above 10% by 2024.

In order to do so, H&M said it would no longer take supplies that use coal-based fuels.

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