H & M Hennes & Mauritz AB (STO: HM-B) have seen their shares jump despite a modest update on Monday morning.
One year ago, H&M saw their sales rise and share fall, despite the firm giving an impressive update to shareholders.
It seems that the tough operating conditions and gloomy high street outlook has taken a toll on H&M, who reported that Black Friday sales did not meet internal expectations.
In a time where rivals are making gains, H&M shareholders will be expecting a strong few weeks of trading across the festive period.
Notable performance came from Boohoo (LON: BOO) who reported a record number of sales across Black Friday weekend a fortnight ago.
The high street slump also appeared to hit established retailers in the clothing sector, as FTSE100 listed Marks and Spencer saw a massive slump in their clothing division in November, which led to a very poor update.
Additionally, Ted Baker saw its shares crash after the firm admitted to a £25 million balance sheet error at the start of December.
Today, the firm reported a slightly smaller than expected rise in fourth quarter sales reflecting a later Black Friday this year, the world’s second-biggest fashion retailer said on Monday.
Net sales rose to £billion for the quarter ending in November, but this was short of the 10% rise expected by analysts.
Sales development for the quarter compared with the previous year was affected by calendar effects, mainly because Black Friday this year fell a week later, i.e. just before the end of the month of November,” H&M said in a statement.
“Therefore some of the big Black Friday online sales will not be recognised until December. The amount in question is expected to be approximately 500 million crowns.”
H&M said that adjusted for that, sales grew 10%, or 6% in local currencies.
Full-year net sales were up 11% to 232.8 billion crowns. H&M is scheduled to publish its full earnings report on Jan. 30.
Shares in H&M jumped 1.72% to 193SEK. 16/12/19 11:53BST.