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The apparel retailer said that the composition of inventory has improved, implying it will become easier to sell the garments.
Hennes & Mauritz AB surged after the struggling Swedish clothing retailer showed progress coping with a buildup of unsold garments, raising hopes that the worst may be over after a three-year slump in earnings.
Inventory dropped slightly as a proportion of sales, easing to 18.2% at the end of May from a record 18.9% as of last August, H&M said Thursday. CEO Karl-Johan Persson said H&M still aims to boost operating profit this year.
