Thursday 27 June 2019 9:20 am

H&M shares rise after spike in summer sales

Shares in H&M jumped ten per cent this morning after the Swedish fashion group reported that summer collection sales were up. 

H&M, which is the world’s second biggest fashion retailer after Zara owner Inditex, said that sales in June rose 12 per cent, beating analyst expectations. 

Read more: H&M shares soar despite profit fall

Sales in the second quarter were up by 11 per cent. 

H&M said it was reducing the number of 2019 store openings from 175 to around 130 as it invests in its online shopping offering.

The retailer plans to expand online into Thailand, Indonesia and Egypt in the second half of this year. 

H&M chief executive Karl-Johan Persson said: “By continuing to integrate our physical and digital channels we are making the shopping experience inspiring, easy and convenient for customers wherever we meet them. 

“This and other extensive investments are driving costs in the short term.

Read more: H&M shares tumble as sector uncertainty outweighs sales growth

“For example, our new online platform and our new logistics systems have not yet achieved full efficiency, but for customers have resulted in improvements such as faster and more flexible deliveries and a more seamless shopping experience. 

“We have also increased the value for our customers through further investments in the customer offering so that we offer the best combination of fashion, quality, price and sustainability.”