The latest period marks the second consecutive quarter in which results exceeded expectations, suggesting that CEO Daniel Erver’s strategy of spending on marketing and price promotions may eventually translate into a more durable sales recovery. The executive has been striving to revive top-line growth and rebuild confidence in the group’s mid-term margin target of 10% for operating profit.
Hennes & Mauritz (H&M) shares soared after the fashion retailer’s profit topped expectations, suggesting a focus on its core H&M brand and tight cost controls are helping its turnaround take hold.
The ramp-up in advertising over the past year helped draw shoppers back into H&M stores and online, offsetting some of the drag from an uncertain economic climate and rising trade barriers. Leaner inventories and a lift from early autumn weather also supported the Swedish fashion retailer’s results.
