H&M shares jumped 9% on Thursday after the fashion retailer delivered stronger-than-expected quarterly earnings, boosted by demand for its autumn collections.
The Swedish group, the world’s second-largest listed clothing retailer, reported operating profit of 4.91 billion crowns for June–August, up from 3.51 billion a year earlier and well above analyst forecasts of 3.68 billion.
Sales in local currencies rose 2%, though reported revenue slipped to 57 billion crowns from 59 billion.
The company warned that higher US import tariffs would hit margins in the current quarter, and said markdowns would rise in the fourth quarter as Black Friday falls earlier.
September sales were flat on last year, which saw unusually high demand. H&M is sharpening its fashion offer to compete with Zara and Shein.
The stock rose 14.40 crowns to 169.65.