H&M makes first quarterly sales increase in two years
H&M posted on Thursday its first-ever quarterly sales increase in more than two years.
H&M shares improved 46% this year, and 58% from the 13-year low seen in 2018. But it is still 50% of its 2015 record level.
June-August pretax profit surges to 5 billion crowns ($507 million). The quarterly profit rise was Sweden-based H&M’s first since 2017. Market share gains and summer collection strong demand helped improve the sales turnout.
“The continued development of more full-price sales and reduced markdowns contributed to a 26% increase in operating profit in the third quarter, all while maintaining a high level of activity in our transformation work,” said CEO Karl-Johan Persson.
The operating profit margin also rose to 8%. The company also stated that its September sales, the first month of its fourth quarter, grew 8% in local currencies.