Swedish clothing retailer Hennes & Mauritz AB (STO: HM) popularly referred to as H&M reported its financials for the third quarter ending August 31 in which the company performed fairly better in relation to what analysts had estimated.
In the quarter, H&M generated a before tax profit of 2 billion crowns ($229 million), even with the pandemic the company managed to soar above the average profit of 191 million crowns analysts had predicted for the period.
“As a result of appreciated collections together with rapid and decisive actions, the H&M group’s recovery is better than expected. More full-price sales combined with strong cost control enabled the company to already turn to profit in the third quarter,” said the company.
Net sales for the company declined by 19% to 50.9 billion crowns in comparison to what H&M registered in a similar quarter last year. This was not far from the 18% decline analysts had estimated for the company.
In the second quarter (March to May) the company registered a 50% sales decline in which it attributed to the pandemic.