H&M, Asos gain as retailers show signs of better days to come

Both retailers surged 6.9 and 16 per cent respectively after returning to profit

H&M’s sales were flat in the three months through May as cold spring weather weighed on shoppers’ purchases. Picture: Getty

Hennes & Mauritz AB and Asos Plc shares rallied after the clothing retailers reported signs of improving prospects.

H&M gained as much as 6.9 per cent after second-quarter revenue exceeded pre-pandemic levels and the Swedish clothing chain said June got off to a good start.

Asos surged as much as 16 per cent after returning to profit. The UK e-commerce retailer forecast as much as £60 million of adjusted operating income in the second half as it cuts inventory and boosts its underperforming brands and markets.