H&M Reports Strong Q1 Profits Amidst Strategic Overhaul Under New CEO

Shares of the fashion giant surged 13% following a significant beat on profit expectations, signaling investor confidence in the company's new direction.

H&M's operating profit soared to 2.08 billion Swedish krona in the first quarter, exceeding analysts' expectations.
The company's strategic focus on profitability over sales volume has led to an improved gross margin and operating profit.
Under new CEO Daniel Ervér, H&M aims to achieve a 10% operating margin by the end of 2024.
The fashion retailer is investing in store refurbishments, AI for inventory management, and digitalization to enhance customer experiences.
Despite a 2% dip in net sales, early March sales show positive signs with a 2% increase, attributed to well-received spring collections.