STOCKHOLM (dpa-AFX) - Shares of Hennes & Mauritz AB or H&M Group (HNNMY.PK, HMRZF.PK, HEN.L) were gaining around 12 percent in the morning trading in Sweden after the retailer Tuesday said its preliminary results show third-quarter profit before tax of approximately 2 billion Swedish kronor, despite the Covid-19 impact.
The company had reported a second-quarter loss after tax of 5.03 billion kronor.
H&M now said its recovery is better than expected as a result of appreciated collections together with rapid and decisive actions. More full-price sales combined with strong cost control enabled the company to already turn to profit in the third quarter.
H&M group's net sales decreased 19 percent to 50.87 billion kronor from last year's 62.57 billion kronor. Net sales fell 16 percent in local currencies.
The company noted that the sales development in the third quarter reflects the Covid-19 situation. At the beginning of the quarter, approximately 900 of the group's more than 5,000 stores were temporarily closed. At the end of the quarter, just above 200 stores were temporarily closed.
The company will announce its third quarter results on October 1.
In Sweden, Hennes & Mauritz shares were trading at 159.95 kronor, up 12.05 percent.
Copyright RTT News/dpa-AFX
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