H&M has reported a 25% spike in net profits during Q3, which it attributed to “continued development of more full-price sales and reduced markdowns”.
In the three month period ending 31 August, the Swedish clothing retailer said profit before tax increased to SEK 5bn (£410m), ahead of analysts expectations of SEK 4.9bn (£400m). It also marks the company’s first quarterly profit increase in almost two years.
Thanks to “well-received summer collections” H&M reported that net sales also increased by 12% to SEK 62.5bn (£5.1bn). Revenues were also boosted by a 30% increase in online sales.
The company added that revenue growth was good in “many markets”, including the US where sales in local currencies rose by 19%, Poland by 20%, Italy by 15%, Russia by 12% and India by 29%.
Karl-Johan Persson, H&M CEO, said: “Well-received summer collections and increased market share show that we are on the right track with our transformation work to meet customers’ ever-increasing expectations.
“The continued development of more full-price sales and reduced markdowns contributed to a 26% increase in operating profit in the third quarter, all while maintaining a high level of activity in our transformation work.”