Hennes & Mauritz AB shares jumped as the embattled retailer’s chief executive officer expressed optimism that he’s coming to grips with record apparel backlogs that have hit its profit.
H&M’s inventories have been a persistent problem, rising steadily as the Stockholm-based fast-fashion chain failed to keep up with consumers’ tastes and was struck by logistics woes. The company says it’s working through the excess stocks and will be able to scale back discounting as a result, even as it irons out its supply problems.
