Skip to content

H&M Stock Price Soars 8% As Profit Tops Estimates

Nigel Frith Nigel Frith
Add as a preferred source on Google
H&M store logo

Shares of H&M (STO: HMb) soared 8% on Thursday after the fashion retailer posted fiscal third-quarter results that topped market expectations.

H&M saw its pretax profit drop to 2.37 billion crowns ($265.6 million) from last year’s 5.01 billion. However, this was still comfortably higher than a 2.03 billion crown profit expected from the market’s analysts.

Expectations that the company will report a profit of around 2 billion crowns were mostly based on the company’s guidance from September.

“Through much-appreciated collections and rapid, decisive actions, we returned to profit,” Chief Executive Helena Helmersson said. “Although the challenges are far from over, we believe that the worst is behind us and we are well placed to come out of the crisis stronger.”

September sales were down 5% compared to the same period last year after losing around 19% in the three months ending August. The Swedish giant said that only 3% remain temporarily shut out of 5,000 stores it operates worldwide.

H&M stock price soars as profit tops market expectations October 2020

H&M share price trades around 8% higher on the day to log the new 4-month high 167.55.

PEOPLE WHO READ THIS ALSO VIEWED:

Nigel Frith
Nigel Frith
Team Member

Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.

Stay ahead of the markets

Sign up to our free Morning Markets email, every weekday before the open.