H&M Shares Surge on Expected Summer Sales Growth

H&M Shares Surge on Expected Summer Sales Growth

H&M's stock experienced a significant surge following the retailer's announcement of anticipated sales growth during the summer season. Despite facing challenges in recent quarters, including increased competition from rivals like Inditex, Shein, and Temu, H&M reported that June sales are expected to rise by 3% in local currencies. This positive outlook has boosted investor confidence.

Second Quarter Performance

The company's second-quarter revenues dipped slightly to 56.71 billion Swedish krona, falling short of analyst expectations. However, operating profit met forecasts at 5.9 billion Swedish krona. CEO Daniel Erver noted that higher purchasing and freight costs had impacted the quarter's results.

Future Plans

Looking ahead, H&M plans to close 200 stores primarily in established markets while opening 80 new stores, focusing on growth markets. The company is closely monitoring global trade dynamics and adapting its supply chain and pricing strategies. They also noted cautiousness among consumers in current "uncertain times."