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.