Shares in H&M (HNNMY) , the Swedish fast-fashion retailer, jumped more than 2% on Tuesday after it released strong October sales figures.

The stock was recently up 2.2% at 257 Swedish kronor in Stockholm. The shares have lost 14.9% since the beginning of the year.

The retailer on Tuesday said that October sales were up 10% in local currency compared with the same month last year. Investors took kindly to the news after the company reported September sales had increased just 1%  year-on-year due to unseasonably warm weather.

At the beginning of November, H&M announced that it was replacing soccer star David Beckham with singer The Weeknd as its spokesperson in a bid to woo younger shoppers. The 26-year-old artist will partner with the retailer to curate a menswear collection and star in its spring 2017 campaign.

The retailer will release its fiscal fourth-quarter results, covering the September to November period, on Dec. 15. Analysts are expecting sales of Skr52.8 billion ($5.7 billion) in the fourth quarter, according to consensus data compiled by FactSet. Same-store sales in the fourth quarter are expected to be down 0.2%, FactSet predicted. In the third quarter same-store sales were down by an estimated 2.4%  having fallen an estimated 5% in the second quarter. (H&M doesn't report same-store sales figures itself, leaving analysts to calculate the number).

H&M's main competitor Zara-owner Inditex's (IDEXY) most recent results show an increase in sales of 14.5% in the second quarter to €5.5 billion ($5.9 billion). Inditex will report third-quarter earnings in December. Analysts are expecting sales of €5.9 billion in the period, according to FactSet, and an increase of 6.6% in same-store sales, down from the 10.5% reported in September for the second quarter.

Inditex stock was recently up 1.9% at €31.49, having lost just 0.6% since the beginning of the year.

Barclays analysts say that both Inditex and H&M have "excellent long-term growth potential with substantial amounts of white space globally."

The analysts have a price target of Skr285 on H&M, making for a 14.3% upside potential. Barclays predicted the group would experience 11% organic growth over the next five years in a note sent to clients on Monday.

H&M has potential to grow substantially globally, Barclays said, as it still generates 71% of sales in Europe. However, the analysts think there is less potential for growth online "as the product range is less appealing for e-commerce as the price points are cheaper and the group expects to charge for delivery."

More from Investing

Should Retirees Invest in the Tech Sector?

Should Retirees Invest in the Tech Sector?

Here's How to Trade Walmart, Nordstrom, Macy's and J.C. Penney After Earnings

Here's How to Trade Walmart, Nordstrom, Macy's and J.C. Penney After Earnings

Here's Why Stock Picking Is Especially Important in the Retail Sector

Here's Why Stock Picking Is Especially Important in the Retail Sector

Tip For Financial Advisors: Think Outside the Box

Tip For Financial Advisors: Think Outside the Box

Walmart Bulls Ring up Profits After Earnings Beat

Walmart Bulls Ring up Profits After Earnings Beat