Home » Markets » H&M bounces back from coronavirus slump
Comments Off on H&M bounces back from coronavirus slumpMarkets
H&M bounces back from coronavirus slump
Online shopping craze not going away anytime soon: Expert
Mainstay Capital CEO and CIO David Kudla provides insight into markets on the first day of trading in September.
STOCKHOLM (Reuters) – Sweden's H&M, the world's second-biggest fashion retailer, beat quarterly profit forecasts as it recovered more quickly than expected from a coronavirus-induced slump, in a positive sign for the industry.
Continue Reading Below
Profit before tax for June-August, the company’s third quarter, came in around 2 billion Swedish crowns ($229 million).
HENNES & MAURITZ
That was well below 5 billion crowns a year earlier, but much higher than analysts’ mean forecast of 191 million crowns, according to Refinitiv’s SmartEstimate model, which is weighted towards more recent estimates and higher-ranked analysts.
“H&M group’s recovery is better than expected,” the company said in a statement on Tuesday. “More full-price sales combined with strong cost control enabled the company to already turn to profit in the third quarter.”
FEW EARLY STARTS FOR 'BLACK FRIDAY' AS THESE RETAILERS ARE CLOSING FOR THE THANKSGIVING HOLIDAY
Sales fell 19% to 50.9 billion crowns, against expectations for an 18% drop. In local currencies, the fall was 16%.
“Very good news and well above consensus,” said Societe Generale analyst Anne Critchlow of the third-quarter profits.