Q1 profit beats expectations
CEO says company aims for 10 operating margin in 2024
Secondhand resale platform Sellpy now part of HM

STOCKHOLM, March 30 Reuters Fashion retailer HM reported a surprise operating profit for the December to February period as costcutting measures started to bear fruit despite consumers curbing spending, but said a cold spell was holding back sales in March.

While HM showed signs of bringing its costs under control, it still struggled to compete with major rival Inditex, owner of Zara and other brands, as well as rapidly expanding fast fashion online retailers such as SHEIN and Temu.

It is more important than ever to offer customers good value for money, CEO Helena Helmersson told analysts on a call.

Unusually cold weather in many of HM39;s key markets held shoppers back from buying spring clothing, the company said, denting its March sales figures.

Still, shares in the company jumped by 8 in early trading after the results a move traders said was amplified by short positions on the stock.

Operating profit in the Swedish group39;s fiscal first quarter was 725 million Swedish crowns 69.73 million against a profit of 458 million crowns a year earlier. A Refinitiv poll of analysts expected a 1.10 billion crown loss.

HM39;s operating profit margin was 1.3, up from 0.9 a year earlier. Helmersson said the company expects a gross margin recovery over the year and is making progress towards its goal of a 10 operating margin next year….