H&M slips to loss, aims to rebuild trust in China

H&M pledged to regain the trust of shoppers in China on Wednesday (March 31).

The fashion retailer saw a backlash in the country after comments it made last year over reports of forced labour in China's western region of Xinjiang.

The Swedish firm had said it would no longer source cotton from there.

On Wednesday, H&M said its commitment to China was still strong.

It also said it was dedicated to regaining the trust and confidence of customers there.

The statement did not, though, make any specific mention of Xinjiang.

China is a key country for H&M.

It's the company's fourth-biggest sales market, and its top source for production.

H&M's statement comes on the same day the retailer reported a first quarter loss of $159 million.

That was largely due to most of its shops being closed by global lockdowns.

H&M shares fell over 2% in morning trade.