Shares of Hennes & Mauritz AB (H&M) (OTC: HNNMY) climbed more than 12% on the Stockholm Stock Exchange in the first hours of trading after presenting well above expectations. The Swedish textile company earned between June and August, its third fiscal quarter, 2 billion Swedish crowns, 192 million euros, while the market was expecting 246 million crowns (23.6 million euros).
In the context of the pandemic and economic crisis, H&M has managed to slow the blow, with a 19% drop in sales compared to 50% in the previous quarter. The textile company mainly attributes the gains to the rapid response offered to Covid-19, to the new collections and to the strong control of expenses. At the beginning of the quarter, 900 of its more than 5,000 stores were temporarily closed. At the end of the quarter, only 200 stores remained closed.
Let's see H&M's rise this morning on a chart, with the gap included.
Source: Admiral Markets MetaTrader 5. H&M H4 chart. Data range: from July 13, 2020, to September 15, 2020. Prepared on September 15, 2020, at 11 am. Keep in mind that past returns do not guarantee future returns.
H & M's results have encouraged other companies in the sector, such as Inditex, which rose more than 4% on the stock market a day before presenting its results.
Despite today's increases, the Swedish chain has overall incurred a drop of just over 15% in 2020. In the last five years it has lost 46% of its value and only closed the year 2019 in the positive, with an increase of 51%.
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