H&M Shares Surge on Progress Clearing Out Excess Inventory
- CEO starts making headway in reducing seven-year buildup
- H&M maintains forecast for profitability improvement next year
This article is for subscribers only.
Hennes & Mauritz AB shares rallied after the Swedish fast-fashion retailer made progress reducing a longstanding inventory buildup, leading to greater optimism profitability will improve.
Operating profit fell less than analysts expected in the three months through May, helped by cost savings, the clothing retailer said Thursday. H&M said it’s on track to reduce inventory further after a 20% reduction to the lowest level since the Covid-19 pandemic. The stock rose as much as 20%, adding more than $4 billion to the company’s market value.