(CercleFinance.com) – Hennes & Mauritz (H&M) reported on Wednesday a stronger than expected increase in its operating profit in the third quarter of its fiscal year, the Swedish group having focused its efforts on its profitability rather than on growth of its sales.
In the three months ended at the end of August, its operating profit jumped to 4.7 billion crowns, compared to 1.6 billion a year earlier, a figure higher than analysts’ expectations, who forecast 4.6 billion.
Its gross margin improved at the same time to 50.9%, compared to 49% a year earlier.
H&M says it achieved net sales of 60.9 billion crowns over the quarter, an increase of 6%, however reduced to quasi-stability once expressed in local currencies.
‘Our attention was focused during this quarter on the profitability and efficiency of our inventories, which made it possible to generate a solid cash flow and favor the evolution of our results,’ explained Helena Helmersson, the director general.
A small downside, the distributor mentions a slow start to its fall collection due to the particularly hot weather observed in Europe in September.
After the announcement of these results, the title of the world number two ready-to-wear company rose by more than 6% on Wednesday morning on the Stockholm Stock Exchange, marking the largest increase in the Swedish benchmark index OMXS30.
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