In recent H&M (OTCMKTS:HNNMY) news, HNNMY stock is soaring close to 15% on Thursday as the company unveiled its latest quarterly earnings results, which saw the company’s profit miss expectations, yet net revenue increased considerably when compared to the year-ago quarter.
The Stockholm, Sweden-based clothing retailer had a solid second quarter thanks to a positive showing from its summer collections, which led to the brand’s sales gaining 11% when compared to the year-ago quarter, coming in at SEK57.47 billion ($6.19 billion). Investors were happy with the company’s start to the summer season with its seasonal collections, which saw net sales in June increasing 12% on the year.
H&M added that for the three-month period, it saw its net profit decrease about 1.5% year-over-year to SEK4.57 billion ($490 million). Analysts were calling for the company to bring in a profit of SEK4.62 billion, according to data compiled by FactSet.
The company is moving towards focusing on online sales, as well as improved logistics in the midst of an era where less shoppers are visiting its physical stores. H&M added that its costs increased by SEK2.73 billion during the period, due in large part to its store and online expansion, as well as investments in areas such as AI, technology, logistics and the company’s customer-loyalty program.
“Our transformation work in response to the rapid shift in fashion retail is continuing at full speed,” said CEO Karl-Johan Persson. “While the costs of this have held back profitability in the short term, we remain convinced that our focus on meeting customers’ increased expectations will contribute to a gradual increase in profitability and to long-term positive development for the H&M group.”
HNNMY stock is up 14.5% on Thursday following the news.