Shares in Hennes & Mauritz (CPH: HM-B) have increased by 13 percent following a better-than-expected trading update.
On Monday the retailer reported strong sales in the third quarter, with sales for the three months to August rising by nine percent.
The company said in a statement: “The H&M group’s continuous transition, to face the major shift within the industry, has contributed to a gradually improved sales development and increased market share in many markets in the third quarter.”
Sales were up nine percent to 55.8 billion Swedish crowns, beating a forecast 5.5 percent rise to 54.0 billion crowns.
H&M, which has over 4,700 stores, said that sales were hit by the introduction of a new logistics system and raised costs in markets incluidng the US, France, Italy and Belgium.
“Sales and cost development in some of the group’s important markets such as the US, France, Italy and Belgium were in the third quarter considerably affected by the issues that emerged during the implementation of new logistics systems in the spring. The new logistics systems enable a faster and more efficient supply chain as well as a continued integration of store and online,” said the group in a statement.
Rival Inditex (BME: ITX), which owns Zara, reported a three percent sales growth for the first half of its fiscal year to end-July.
Shares in H&M (CPH: HM-B) are currently trading up 13.02 percent at 139.20 (1033GMT).
