H&M (OTCMKTS:HNNMY) unveiled its latest quarterly earnings results early on Friday, raking in a profit that was stronger than what Wall Street projected in its consensus estimate, while sales were up more than 10% year-over-year, playing a role in the company’s stock soaring today.
The Stockholm, Sweden-based retailer announced that for its first quarter of its fiscal 2019, it amassed a net profit of 803 million Swedish kronor, which came in at roughly $86.4 million. The amount was below the SEK1.37 billion from the year-ago quarter by about 41%.
However, the amount was better than the earnings that Wall Street predicted H&M would amass at SEK525 million, according to a survey of analysts conducted by FactSet. The fashion retailer bet heavily on expanding its e-commerce business, including investments in its logistics and loyalty program.
The company’s sales for its first quarter, excluding value-added tax, reached SEK51.02 billion, which is about 10.5% ahead of the SEK46.18 billion that analysts predicted. Meanwhile, net sales between Mar. 1 and Mar. 27 gained roughly 7% on the year in local currencies.
“Our ongoing transformation work has contributed to stronger collections with increased full-price sales, lower markdowns and increased market shares,” said H&M CEO Karl-Johan Persson. “The rapid transformation of fashion retail continues and we can see that our own transformation work is taking us in the right direction, even if many challenges remain and there is still hard work to do.”
HNNMY stock is soaring about 10% on Friday following the company’s strong quarterly performance.
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