H&M: Rallies on surprise profitability beat

(Updates share price move, adds details)

** Shares in H&M surge 13% and are on track for
their best day since March after the world's second-biggest
fashion retailer's Q3 profit beat expectations, lifting other
European retailers (+1.3%)

** H&M reported preliminary net profit of around SEK 2
billion ($228.52 million)

** H&M's recovery is better than expected, it said, adding
that more full-price sales combined with strong cost control
enabled it to already turn to profit in Q3

** The real, and strongly positive, surprise today is the
comment on profitability in Q3, says JP Morgan, and adds it
comes well ahead of the brokerage's forecasts of SEK 216 million

** Shares in peer Inditex rise 3.2%, while Marks &
Spencer is up 5% after Ocado's (+4%) sales
update

** H&M is set to report full Q3 results on October 1
($1 = 8.7520 Swedish crowns)