H&M shares rise 12% after beating earnings forecasts
Shares of Hennes & Mauritz AB (H&M) 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%.
With Admiral Markets UK Ltd you can invest in H&M shares or in CFDs on H&M shares. To trade with this company, just open a free demo account or a live trading account. Click on the following banner for more information:
INFORMATION ON ANALYTICAL MATERIALS:
The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter "Analysis") published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:
1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.
2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.
3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter "Author") based on personal estimates.
5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.
6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset's value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.