A financial comparison: Fast fashion versus sustainable fashion : Case study: The H&M Group and Marimekko

Abstract

This thesis is conducted with the purpose of analyzing if there is any difference between fast fashion and more sustainable fashion from a financial perspective. The study is conducted on the two case companies The H&M Group and Marimekko. The analysis is carried out with the help of methods of ratio analysis, business strategy analysis as well as a cash flow analysis to ensure a thorough result. The data for this study is retrieved from the case companies’ annual financial reports from the period 2017-2021. The analysis of the financial reports is done with the help of the different existing theories to produce an answer to the research questions. In this thesis a deductive qualitative approach is applied. This research concludes that the fashion industry is a competitive industry, but the companies that put more effort into their sustainability has a competitive advantage.