H&M shares surge after surprise profit
STORY: H&M shares surged over 15% on Thursday (March 30).
That after it posted a surprise first-quarter profit of almost $70 million.
Analysts had forecast a loss.
The gain came despite consumers curbing spending amid a cost-of-living crunch.
A cold spring also held back sales of new-season apparel.
But moves to cut costs appear to be paying off.
The retailer saw its profit margin rise to 1.3%, up from just 0.9% a year earlier.
Chief executive Helena Helmersson said that put it on track to meet a goal of hitting 10% profit margins next year.
Analysts at Credit Suisse called that target “very challenging”, however.
H&M also continues to lag bigger rival Inditex, owner of the Zara chain.
It saw profit surge by more than a quarter over the past year.
H&M also faces mounting competition from online rivals like SHEIN.