By Tiffany Williams –
H&M stock ripped higher Thursday after the fast-fashion giant blew past profit forecasts and showed its long-promised turnaround is finally gaining steam.
Shares surged 10% in early London trading as the Swedish retailer posted a 40% jump in operating profit to 4.9 billion krona ($522 million) for the fiscal third quarter — handily topping the 3.7 billion krona expected by analysts.
Sales for the three months through August also edged out forecasts, hitting 57 billion krona compared to the 56.8 billion penciled in by Wall Street.
The results mark one of the clearest signs yet that H&M’s belt-tightening, inventory clean-up and sharpened fashion focus are paying off — giving the chain some badly needed momentum in its fight against rivals like Zara and Shein.