Shares of H&M rose by 13% due to an unexpected increase in profits
Kyiv • UNN
H&M's operating profit in the first quarter rose more than expected to $196 million, which led to a 13% jump in the company's shares.
H&M has published its quarterly profit of 2.08 billion kronor, up 1.43 billion from the previous year. Writes UNN with reference to Reuters.
Details
The world's second largest clothing retailer, H&M, reported a quarterly operating profit of $196 million, sending H&M shares up 13%.
The new CEO, Daniel Erver, says that the reason for the growth is that consumers really liked the brand's spring collections.
Reuters notes that H&M is facing challenges in the market due to the expansion of their competitor Zara and the rapid growth of Chinese online store Shein with cheap goods. After these competitors gained market share, new CEO Daniel Erwer suggested that the company focus on its core audience.
We want to be a reliable fashion brand for young customers, especially women in their 20s and 30s
On Wednesday, Erwer said that the company's top priority is to increase sales, a move away from H&M's previous emphasis on profitability that was welcomed by the market and analysts.
Recall
Top fashion brands such as Zara, Massimo Dutti, and Bershka are reopening in Ukraine after being temporarily closed due to the Russian invasion, another step in the return of major international companies to the country.
