Fashion retailer H&M posts surprise Dec-Feb profit

H&M, the world's second-biggest fashion retailer, reported on Thursday a surprise operating profit for the December-February period, lifted by one-offs despite weak demand as consumers curtailed spending amid soaring inflation.

Operating profit in the Swedish group's fiscal first quarter was 725 million Swedish crowns ($69.73 million) against a profit of 458 million a year earlier and a mean forecast of 1.10 billion loss in a Refinitiv poll of analysts

. While H&M showed signs of bringing its costs under control, it still struggled to compete with

major rival Inditex , owner of Zara and other brands, as well as

rapidly expanding fast fashion online retailers such as SHEIN and Temu.

($1 = 10.3975 Swedish crowns)