STOCKHOLM (Reuters) – Sweden's H&M, the world's second largest apparel retailer, beat quarterly earnings forecasts, recovering faster than expected from the coronavirus-induced downturn, which is a positive sign for the sector as a whole.
Profit before tax for June-August – the third quarter of the company – was about 2 billion Swedish kronor ($ 229 million).
This is well below the 5 billion kronor a year earlier, but well above the analyst average of 191 million kroner, according to Refinitiv's SmartEstimate model.
“The recovery of the H&M group is better than expected,” the company said in a statement on Tuesday. “More sales at full value, coupled with strong cost control, allowed the company to return to profit in the third quarter.”
Sales fell 19% to 50.9 billion kroons, against an expected decline of 18%. In local currencies, the decline was 16%.
The company will release its full quarterly report on October 1.
($ 1 = 8.7472 SEK)
(Anna Ringström, with the participation of Johannes Hellström, translated by Elizaveta Zhuravleva. Editor Anna Kozlova)