H&M surges as Q1 results top expectations
By Michele Maatouk
Date: Wednesday 27 Mar 2024
(Sharecast News) - Swedish fashion retailer H&M surged on Wednesday after posting better-than-expected results for the first quarter.
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."
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