Shares in H&M surge on strong trading

Shares in Hennes & Mauritz surged on Thursday, after the Swedish fashion giant posted above-forecast profits and said the third quarter had got off to a strong start.

Second-quarter net sales in the three months to 31 May rose 6% to SEK57.6bn (£4.2bn), and were “flattish” in local currencies.

Operating profits came in at SEK4.74bn, down on last year’s SEK4.98bn but above analyst forecasts for SEK4.07bn.

Interim sales rose 9%, or by 1% in local currencies, to SEK112.5bn, while operating profits were SEK5.47m, compared to SEK5.45m a year previously.

The owner of H&M, Monki, Cos and & Other Stories, among others, added that the strong trading had continued into the current half, with sales in the period 1 to 27 June up 10% in local currencies.

Helena Helmersson, chief executive, said: “We are taking important steps towards our goals. The summer collections have been well received and the third quarter has got off to a good start. The conditions for increased growth as well as profitability continue to develop in a favourable direction.”

She added that the retailer had increased sales in a number of markets, “despite reduced purchasing power and unfavourable weather conditions”.

As at 1400 BST, shares in the world’s second-biggest fashion retailer after Spain’s Inditex were up 17%.