Swedish fashion retail giant H&M reported on the 24th that its third-quarter results, covering June through August, saw operating profit rise from 4.91 billion Swedish kronor a year earlier to 6.04 billion kronor, or 608.63 million dollars, beating analysts' forecast of 5.14 billion kronor. CEO Daniel Ervér said efforts to curb costs and improve sourcing efficiency are beginning to pay off. Gross margin widened from 52.9% a year earlier to 54.0%, helped by factors including tariff refunds, and came in above the 53.4% analysts had expected. Sales, however, remain sluggish; September sales are expected to rise 1% in local currency terms, the same pace as in the June-August quarter, and the stock fell 2% at the open. Meanwhile, H&M's founding family has quietly been adding to its stake, fueling speculation that the company could be taken private in the future.
H & M Hennes & Mauritz AB (publ)Q3 operating profit rose to 6.04 billion kronor, beating the 5.14 billion forecast, with gross margin widening to 54.0%.
