Smaller- than-anticipated decline in sales has helped the world’s second largest-listed fashion retailer H&M exceed forecasts for first-quarter operating profit.
Surpassing analyst expectations in an LSEG poll, the Swedish company reported an operating profit of $196 million during the quarter.
Although sales declined by 2 per cent, it was better than what analysts had predicted. Additionally, the brand’s sales at the beginning of the second quarter rose by 2 per cent, indicating resurgence in demand for its apparel and accessories.
Daniel Erver, CEO, states, the gradual improvement in quarter's sales during February with well-received Spring collections is a positive sign of the brand being on the right track.
Further, the company aims to achieve a 10 per cent operating profit margin by the end of the year. Erver also faces the challenge of demonstrating H&M's ability to increase profitability while restoring sales growth.
Renowned for jeans priced at $19.99 and dresses under $15, H&M also offers higher-priced items such as leather trousers priced at over $300 and coats under its Cos brand that can cost as much as $1,190.
