H&M surges as Q1 results top expectations

Operating profit rose to 2.08bn Swedish krona from 725m a year earlier, coming in 1.4% above consensus expectations.

Meanwhile, first-quarter sales declined by 2% to 53.7bn Swedish krona, but this was better than expected.

Chief executive Daniel Erver said: "The quarter’s sales gradually improved during February with well-received Spring collections, which is a positive sign that we are on the right track."

At 1100 GMT, the shares were up 11.7% at SEK172.40.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "H&M has been navigating a world of cautious shoppers with style, and although sales fell by 2% in the last quarter, it was a better performance than expected and helped deliver operating profits above forecasts.

"H&M and its teams of designers in Stockholm have their finger on the pulse of what high street shoppers want to wear. As cost-of-living pressures have started to ease in key markets, sales are on the up again, lifting 2% since the start of March."