(News Bulletin 247) – Hennes & Mauritz reported on Thursday a less marked drop than expected in its operating profit in the second quarter of its fiscal year, thanks in part to the favorable reception reserved for its state collections.

In the three months to the end of May, its operating profit fell to 4.4 billion crowns, against 4.7 billion a year earlier, a figure however higher than analysts’ expectations, which forecast a profit of 4.1 billion.

After the announcement of these results, the title of the Swedish ready-to-wear giant jumped 11% on the Stockholm Stock Exchange, signing by far the strongest progression of the flagship index OMXS30.

H&M says it generated net sales of 57.6 billion crowns over the past quarter, an increase of 6%, even if they are stable when expressed in local currencies.

The group said its gross margin fell to 52.7% in the second quarter, from 54.8% a year ago, a performance below consensus.

But he said he was encouraged by the good reception given to his summer collections and stressed that his third term, which opened in early June, had started well.

“The conditions for increased growth and improved profitability continue to move in the right direction,” said Helena Helmersson, its chief executive.

‘We believe that H&M has adopted various measures to improve its multi-channel offer for customers, which should allow it to hold its own in its main markets’, react on their side the analysts of RBC.

The stock has gained 43% since the start of the year, compared with a 9% rise for the OMX Stockholm All-Share GR index.

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