H&M leads stocks higher amid strong profit growth
The group’s recovery from a coronavirus-induced slump is better than expected
Stocks impacted: H&M (HM-B)
The world’s second-biggest fashion retailer reported a better than expected preliminary quarterly profit before tax of around 192 million euros. The company's pretax earnings reached about $230 million in the three months through August, which is eight times the average analyst estimate and almost double the highest forecast. The Swedish firm said in a statement that H&M group’s recovery from a coronavirus-induced slump is better than expected. At that, net sales fell 19% from a year earlier versus -18% expected. As a reminder, in the second quarter, the pandemic pushed the retailer into a deep loss as sales halved. H&M will report full earnings on October 1. Following the release, the firm’s stocks jumped over 12%, leading the gains in the European retail sector on Tuesday.
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