H&M’s group sales have increased by 9% according to the fashion chain’s Q3 financial update.
Performance exceeded analysts’ expectations, resulting in the company’s highest share increase in 17 years. The firm attributed to the results to investment in its online offerings and logistics systems.
Investors rallied to what seemed to signify a turnaround for the Swedish brand and its share price was up 18% at its peak on Monday 17 September.
Earlier in the year, the company said it would attempt to lower its stock inventory with discounted prices and make its supply chain more flexible.
H&M’s sales including VAT for the period between 1 June 2018 and 31 August amounted to 64.8bn Swedish krona (£4.77bn); excluding VAT this amounted to 55.8bn Swedish krona (£5.53bn).
The company’s statement said: “The H&M group’s continuous transition, to face the major shift within the industry, has contributed to a gradually improved sales development and increased market share in many markets in the third quarter.
“However, sales and cost development in some of the group’s important markets such as the US, France, Italy and Belgium were in the third quarter considerably affected by the issues that emerged during the implementation of new logistics systems in the spring.
“The new logistics systems enable a faster and more efficient supply chain as well as a continued integration of store and online.”