HM B:CHE - Embedded Expectations Analysis - 2018 07 25
H & M Hennes & Mauritz AB (publ) (HM B:CHE) currently trades near recent lows relative to UAFRS-based (Uniform) Earnings, with a 21.8x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about brands and product lines, as well as operating expensesSpecifically, management may lack confidence in the launch of their most recent brand, Afound. Also, they may be concerned about carrying a large degree of season-less products and about the value of their broad assortment mix. They may also have concerns about the financial impact of the H&M Club and improving their fashion. Moreover, they appear concerned about their operating expense growth, and may be concerned about a continuation of their recent performance, specifically their declining sales, falling EPS and cash flows from current operations.
H & M Hennes & Mauritz is engaged in the sale of clothing and cosmetics in Sweden and internationally. Co.'s stores offer basics, tailored classics, sportswear, and maternity clothes for women; basics, leisurewear, and seasonal fashions for men; denim and street fashions; and fashion wear for children and teenagers, as well as accessories, underwear, and shoes. Co. also provides makeup and body care products; and home fashion products, which include interior textiles for the bedroom, bathroom, living room, and kitchen. Co. has approximately 3,132 stores, including 110 franchise stores, 85 COS stores, 79 Monki stores, 21 Weekday stores, 8 & Other Stories stores and 3 Cheap Monday stores.
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