STOCKHOLM—Hennes & Mauritz AB shares rose the most in 17 years after the ailing Swedish fashion retailer reported sales growth that took analysts by surprise, boosting optimism the H&M chain may have turned the corner. H&M reported third-quarter revenue growth that exceeded the highest analyst estimate as it offered discounts to clear out inventory and received a boost from the weak krona. The gain is the first glimmer of a turnaround at H&M, which has been struggling to reduce a record position of unsold garments. “H&M seems to have come close to stabilizing same-store sales,” wrote Charles Allen, an analyst at Bloomberg Intelligence. “If they have managed to reduce inventory, weak margins are likely to be forgiven.” Last week, Zara owner Inditex SA reported its weakest six-month sales growth in four years.

Source: thestar September 17, 2018 17:26 UTC