STOCKHOLM (Reuters) - Fashion retailer H&M (HMb.ST) said on Monday its sales rose 9% in the fourth quarter, putting it on course to increase annual profits for the first time in four years following heavy investment in online and other services to adapt to a changing market. Shares in the world's second-biggest apparel group were up 2% at 1000 GMT, outperforming the wider market in Stockholm .OMXSPI.
They have now climbed 53% this year on hopes the group has embarked on a road to recovery after slowing footfall at its core H&M-branded stores caused years of sliding group profits, mounting inventories and shrinking market value.
Over the past few years the Swedish-based retailer has invested in online services, new store concepts and independent brands to broaden its customer base and turn itself around.
H&M said its sales in September-November, its fourth quarter, were held back by the Black Friday shopping day falling later this year.
It said sales for the quarter rose 9% to 61.7 billion crowns ($6.41 billion). Analysts had forecast a 10% rise, according to Refinitiv SmartEstimates.
In local currencies, growth was 5%.
“Black Friday this year fell a week later, i.e. just before the end of the month of November,” H&M said in a statement.
“Therefore some of the big Black Friday online sales will not be recognized until December. The amount in question is
expected to be approximately 500 million crowns.”
H&M said that adjusted for that, sales grew 10%, or 6% in local currencies and analysts said that stripping out the Black Friday impact, sales broadly matched expectations.
