H&M Surprises With Stronger-Than-Expected Return to Profit
- Pretax earnings are about double highest analyst estimate
- Report soothes concern about retailer’s inventory buildup
This article is for subscribers only.
Hennes & Mauritz AB reported a return to profit that surged far past analysts’ expectations, a bullish sign for purveyors of fast fashion.
The Swedish clothing retailer estimated pretax earnings reached about 2 billion kronor ($230 million) in the three months through August, based on preliminary results. That’s eight times the average analyst estimate and almost double the highest forecast. The shares rose as much as 13% in Stockholm Tuesday morning.