H&M shares (STO:HM-B) were up on Thursday after the Swedish multinational fashion retailer posted a rise in profit in its results for the third quarter.
The company saw its pre-tax profit grow to SEK 5.0 billion from June to August, up from the SEK 4.01 billion figure recorded the year prior.
Net sales increased by 12% in the third quarter. In local currencies, net sales grew by 8% compared to the same quarter a year prior.
The fashion retailer said that its summer collections had been “well-received”.
“Well-received summer collections and increased market share show that we are on the right track with our transformation work to meet customers’ ever-increasing expectations,” Karl-Johan Persson, CEO, said in a company statement.
“Continued increases in full-price sales and decreases in markdowns contributed to a 26 percent increase in operating profit in the third quarter, all while maintaining a high level of activity in our transformation work,” the CEO continued.
“Customer focus is our highest priority. We are therefore continuing to invest in the best combination of fashion, quality, price and sustainability.”
“And to make the customer experience even more inspiring and easy, we are integrating our digital and physical channels more and more – including through the continued rollout of Click & Collect and online returns in store, along with improved search functions, more flexible payment options and faster deliveries.”
H&M is also in the process of developing new features such as services aimed at sustainability and reuse.
The CEO added that growth was “good” in many of the retailer’s markets. In the US, sales in local currencies increased by 19%, Poland by 20%, Italy by 15%, Russia by 12% and India by 29%.
As for retail in the UK, several high street names have suffered amid gloomy trading conditions. Earlier this week news emerged that JD Sports’ (LON:JD) £90 million deal to acquire struggling Footasylum will undergo additional investigation for the impacts it will have on market competitiveness.
Shares in H&M Hennes & Mauritz AB (STO:HM-B) were trading at +6.57% as of 10:53 CEST.