Luxury & Fashion Sales growth or margin protection? H&M seems to have chosen the former Resolving the margin conundrum even more challenging. Fashion groups are currently facing a very difficult dilemma between prioritizing sales growth and margin improvement, in a context of consumer squeeze and inflation. H&M has made the deliberate choice to invest in its value-for-money positioning through very targeted price hikes, which was materialized by a steep decline in profitability in Q3. This down...
H & M - NEUTRAL | SEK190 Q2 sales topped CS expectations by 2% Q2 sales beat driven by a sharp acceleration in April and May Q2 results due on 29th June: we expect a fiercer pressure from higher input costs H&M and Inditex deliver reassuring performances vs. US peers, we still prefer Inditex
H & M - NEUTRAL vs. BUY | SEK190 VS. SEK225 (+46%) Zone of turbulence In January H&M announced its objective to double sales over the 2021-30 period and 2022 was supposed to illustrate that ambitious goal, with a strong sales and earnings momentum. However, deterioration in European consumer sentiment and the temporary shutdown of its operations in Russia (c.4% of sales) will undoubtedly hamper top-line growth. The huge EBIT miss in Q1 also confirms that pressure from higher input costs, Russia...
H & M - BUY | SEK225(+26%) Despite near-term uncertainty, H&M aims to accelerate the pace of MT/LT growth Ambitious 2030 targets Solving the equation: sales growth with carbon emissions halving at the same time… Segmentation strategy: Inditex and H&M have different approaches What about 2022? Buy rating and TP of SEK225 reiterated
Significant margin beat in Q4 Q4 FX-n growth was also better-than-expected Inventories start again a healthy reduction Current trading in line with CS expectations FY21 divided of SEK6.5 and new share buyback programme announced
H & M - BUY | SEK235(+29%) Q3 results beat expectations and dividend of SEK6.50 to be paid in November Q3 results: strong margin beat Q3 sales unveiled on 15th Sep fell short of CS expectations by c.3% Current trading in line with Q3 trends on a two-year stack basis H&M is relatively preserved from Asian sourcing issues
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
H & M - BUY | SEK235 VS. SEK225 (+16%) Stronger-than-expected Q2 results, current trading is normalizing Q2 earnings top expectations Q2 FX-n sales growth was in line Reassuring improvement in inventory levels Current trading is positive but normalizing
H & M - BUY | SEK195(-4%) Q1 results show resilience despite a significant drag from lockdowns A tight opex control helped mitigate the EBIT loss in Q1 Q1 sales beat expectations by c.2% Inventory levels continue to increase this quarter Reassuring current trading: sales up 55% FX-n in March
H & M - BUY | SEK195(+5%) In-line FY20 results but H&M is now facing a very tough environment due to lockdowns Q4 & FY20 results are fairly in line with expectations Ongoing stores closures are impacting inventory levels Very challenging current trading due to store closures and curfews Self-help catalysts to partly offset these negative market conditions
H & M - BUY | SEK195(+26%) Another step forward in its digital transformation Three reasons why integrated inventory management is key Net store closures to accelerate as omnichannel progresses Record stock levels, but healthy assortment mix We nudge up our FY20-21 estimates by c.2%; Buy rating reiterated
H & M - NEUTRAL | SEK190 vs. SEK210 (+42%) Good Q1 FX-n sales growth before covid-19 spread in Europe Covid-19 impact weigh on Q1 sales growth by c.2pp Incoming Q1 results would not be at the centre of attention... ... because of covid-19 spillover to Europe Neutral recommendation reiterated, new FV of SEK190
H & M - NEUTRAL | SEK210 vs. SEK200 (+11%) A brighter 2020 outlook which now seems fairly priced in Opex leverage to continue thanks to self-help catalysts Top line growth: less new space contribution and more LFL? Top management shakeup but smooth transition New FV of SEK210 but Neutral recommendation
H & M - NEUTRAL | SEK185(-3%) Q4 sales trends a touch softer than expectations Sales slowdown a touch more significant than expected Q4 results due on 30th Jan: investments to continue to weigh on GM Issues with inventory levels and FCF generation? FY20: a year of confirmation?
H & M - NEUTRAL | SEK185 vs. SEK175 (-3%) Going in the right direction but still a long way to go Ongoing transformation work: the German case study Cannibalisation progressively fades away thanks to omnichannel FY19 and FY20 EPS assumptions revised up by X% Issues with the FCF generation and inventories still on the agenda
H & M - NEUTRAL | SEK175(+21%) Slight Q2 margin miss but better-than-expected trading update in June Q2 margins a touch below CS expectations No surprise to Q2 sales growth reported on 17th June QoQ inventory reduction of 30bp to 18.3% Very encouraging current trading: 12% FX-n in June
H & M - NEUTRAL | SEK175(+15%) Q2 FX-n sales growth of 6% in line with CS forecasts Implied LFL of ~2.5% thanks to easy comps (Q2 2018: -6%e LFL) Questions marks on margins and inventories to remain Neutral recommendation and FV of SEK175 reiterated
H & M - NEUTRAL | SEK175(+28%) Q1 2019 margin bet while inventories are increasing Better than expected gross margin No surprise to Q1 sales trends and a slight LFL miss Inventories back to higher levels Encouraging current trading but caution on the GM development
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