H&M shares rise on cost moves

Shares in H&M have risen after the fashion retailer reassured investors that it would not need to cut costs further to shift unsold clothing despite a bigger-than- expected 20% fall in quarterly profit.

The Swedish company reported teething problems with a new logistics system designed to improve its supply chain but said it did not expect increased discounting in the current quarter because of what it called the “quality and balance” of its inventories.