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H&M bounces back into profit

AFP | Published: 23:47, Sep 15,2020

 
 

Swedish clothing giant Hennes and Mauritz bounced back into profit last quarter despite many of its stores remaining closed due to coronavirus restrictions, sending its share price surging Tuesday.

H&M had tumbled into a loss in its March-May quarter when, like many other non-essential retailers, lockdowns forced it to close shops.

And while sales for the June-August quarter were still down 19 per cent from last year to 50.9 billion Swedish kronor (4.9 billion euros, $5.8 billion), a move towards higher value collections, less discounting, and cost cutting helped it turn a profit, the company said in a preliminary earnings statement.

The preliminary pre-tax profit of approximately 2.0 billion kronor was much more than the 250 million expected by analysts, sending H&M shares climbing by more than 10 per cent in morning trading in Stockholm. 

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