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...
Already in a zone of turbulence. Over the summer, some European apparel markets showed signs of weakening demand on the back of a challenging macro environment and consumer squeeze. As H&M and Inditex will both report their results in coming weeks, we expect diverging sales and earnings trends in favour of Inditex thanks to its “crisis-proof” business model. Last but not least, Inditex’s valuation remains quite appealing at 17.8x 2022e P/E (23% discount vs. 5-year average), especially since down...
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 | 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 - NEUTRAL | SEK200(+5%) Solid Q4 earnings performance and reassuring current trading Q4 earnings topped expectations despite a slight GM miss Pre-announced Q4 and FY19 sales were in line Stable dividend at SEK9.75 and improving FCF generation Reassuring current trading
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
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