H&M Surges as Earnings Beat Estimates on Fewer Discounts
- Sales growth has accelerated in start of second quarter
- Inventories are building up once again at Swedish retailer
Photographer: Victor J. Blue/Bloomberg
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Hennes & Mauritz AB shares surged after the ailing Swedish clothing retailer reported first-quarter profit that beat expectations on lower clearance sales.
The stock rose as much as 16 percent after the company pulled back on discounts, compared with the fire sale it held a year earlier. The gains may have been spurred by “short squeezes,” when a bit of good news spurs investors who have bet against the stock to rush to reverse positions. The shares have still lost more than half their value since their 2015 peak.