Swedish fashion brand H&M posted bumper revenues for the nine months to the end of August this morning, as third-quarter sales climbed amid the retailer’s efforts to ramp up its online shopping operations in the wake of persistent high street troubles.
Revenues in the third quarter of 2018 climbed nine per cent to Skr64.8bn (£5.59bn), largely driven by a 32 per cent increase in online sales.
However, the firm also posted a higher-than-expected drop in pre-tax profits after problems arising from the implementation of a new logistics system, which was rolled out in the hope of integrating its online services with its bricks-and-mortar outlets.
Pre-tax profit in June through August shrank 20 per cent to Skr4.01bn from a year-ago, lower than a recent Reuters poll of analysts that forecasted a 16 per cent drop to Skr4.21bn.
Read more: H&M enjoys boosted sales in third quarter
H&M blamed the problems around the new rollout for a fall in sales within its US, French and Italian markets.
Shares in the retailer were up more than 10 per cent this morning, having also jumped earlier last week after the company released a market update to investors that showed it was making up lost ground in sales.
Like many fashion giants in the last year, H&M has seen its profit margins come under threat as more consumers shift away from the high street and onto online shopping sites.
The news comes six months after the fast-fashion chain’s share price crashed to its lowest point in a decade, having posted a 60 per cent drop in profits during the first quarter of this year.