Hennes & Mauritz AB, the second-top global clothing retailer, reported upbeat sales figures for August and the whole third quarter, boosting the companys stock to a new all-time high.
The Swedish companys sales in local currencies increased 19% on an annual basis in August, while sales for the third quarter ended August 31st were up 16% from a year ago at SEK 45.259bn (~$6.32bn).
“Strong momentum continues,” Simon Bowler, an analyst at Exane BNP Paribas, said in a note cited by Bloomberg. “Whilst this will be positive for sentiment, it is important to understand the cost shape driving this sales momentum. We fear gross margin weakness will be a risk at the third-quarter results, as tough comparatives across the second half expose the margin pressure from an increasingly competitive value market.”
The preliminary report also pointed at a 13% increase in the number of stores operated by the company, outlining its expansionist agenda.
The company has also invested heavily in a growing online presence, and plans to operate on 8 to 10 online marketplaces by 2015.
H&Ms complete Q3 report is due on September 25th.
Hennes & Mauritz AB had added 2.64% by 11:46 GMT today, to trade at the all-time high of SEK 310.70 (~$), valuing the company at SEK 453.6bn (~$63.46bn). The stock is up 24.47% on an annual basis. According to the Financial Times, 28 analysts offering 12-month price targets for H & M Hennes & Mauritz AB have a median target of SEK 312.50, with a high estimate of SEK 400.00 and a low estimate of SEK 185.00.
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