In a positive start to June, global fashion giant H&M, renowned fashion house Hugo Boss, and online retailer Asos showcased their resilience, alleviating concerns over a fashion sector grappling with weakened US demand.

Investors found solace in the signs of strength, as economic uncertainties prompted consumers in crucial markets like Europe, the US, and China to scale back on clothing purchases.

Nonetheless, consumers on tighter budgets have become more discerning, leading to a growing divergence among brands.

H&M's shares rose by 3.5% as analysts predicted a robust third quarter following stagnant sales from March to May. The company has been working to enhance its fashion appeal, bolstering its higher-priced brand Cos, aiming at customers less vulnerable to rising living costs, as fast-fashion leader Shein gains market share with affordable clothing.

Bank of America analysts anticipate a boost in H&M's half-year earnings, thanks to its successful collaboration with luxury brand Mugler, with results expected on June 29.

Asos, working to recover from a substantial increase in inventory and debt, relies heavily on price-conscious young shoppers seeking the latest trends. Despite a decline in sales, the company reported that its focus on profit per order is yielding positive results. Asos has reduced its stock since the beginning of the year and plans to eliminate unprofitable brands from its platform.

Highlighting the diverging trajectories of brands in this uncertain landscape, luxury fashion retailer Hugo Boss raised its sales and profit targets for 2025, affirming strong growth in the US while peers observed weakness among "aspirational" consumers in the market.

Analysts at Citi acknowledged Hugo Boss's immunity to cracks in the US consumer environment, along with minimal impact in Europe.