STOCKHOLM, June 29 Reuters HM, the world39;s secondbiggest fashion retailer, reported a forecastbeating 33 increase in MarchMay profit on Wednesday as shoppers flocked to its stores in the aftermath of the pandemic.

The Swedish company reported a pretax profit of 4.78 billion crowns 471 million for its fiscal second quarter, up from 3.59 billion a year earlier. Analysts polled by Refinitiv had on average forecast a 3.87 billion crown profit.

Sales in physical stores increased substantially while online continues to do well, Chief Executive Officer Helena Helmersson said in a statement.

The company also said it had decided to use an authorisation given by owners at its annual general meeting in May to buy back 3 billion crowns worth of shares.

HM shares were up 2.7 at 0720 GMT.

The fashion retailer had said earlier this month that sales in the quarter were up 12 measured in local currencies at 54.5 billion crowns.

It said on Wednesday, however, that localcurrency sales in June, the first month of its third quarter, fell 6, mostly because it halted its business in Russia, Ukraine and Belarus.

RBC analyst Richard Chamberlain said in a note to clients the June sales were lower than expected.

The company temporarily closed its stores in Russia in March after Russia39;s invasion of Ukraine. The country was HM39;s sixthbiggest market with 4 of sales in the fourth quarter of 2021.

In China, HM has seen sales slump over the past year amid a consumer boycott over company…