H&M’s shift in strategy bears fruit

// H&M net sales up 11% to £4.81bn thanks to strategy shift
// Pre-tax profit fell to £500m
// Shares in the company rose 10%

H&M has recorded a strong rise in revenues in the second quarter thanks to a strategy overhaul.

The fashion retailer said its summer collection sales had a “a very good start”.

Net sales rose by 11 per cent to SKR 57.47 billion (£4.81 billion) in the three months to the end of May, compared with the same period a year previously, while pre-tax profit fell to SKR 5.93 billion (£500 million).

Shares in the company rose 10 per cent in early trading in Stockholm.

“The H&M group continues to increase full-price sales, reduce markdowns and increase market share, showing that customers appreciate our collections and the improvements we are making to the product assortment and the customer experience,” H&M chief executive Karl-Johan Persson said.

H&M expects net sales in June to increase by 12 per cent.

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