INTERNATIONAL - H&M, the world’s second-biggest fashion retailer, reported on Thursday its first quarterly rise in pretax profit in more than two years and said efforts to meet rapid changes in the market were on track.
H&M has been spending heavily on reviving its business after years of falling profits and growing inventories due to slowing sales at its core H&M branded stores, which have faced tougher competition and grappled with the shift to more online shopping.
Its shares rose 6.8 percent in early trade. They have now spiked 56 percent so far this year and more than 60 percent from the 13-year low seen in 2018 but remain about half their 2015 record level.
“H&M delivered its first strong quarterly earnings in over four years, which could raise confidence in the turnaround,” investment bank Carnegie said in research note.
Pretax profit in the period from June to August beat expectations, growing to 5.0 billion crowns ($507 million) from a year-ago 4.01 billion crowns. Analysts had on average forecast a rise to 4.93 billion crowns, according to Refinitiv data.