- H&M’s first-quarter operating profit was significantly below estimates at SEK491 million, while the forecast was SEK1.94 billion.
- The company’s gross profit reached SEK530 million, well below the estimated SEK28.24 billion.
- H&M recorded a gross margin of 49.1%, which fell short of the projected 50.8%.
- The operating margin stood at 2.2%, underperforming the expected 3.47%.
- The reported net income for the quarter was SEK590 million.
- H&M has a global presence with a total of 4,213 stores.
- Analyst ratings for H&M include 8 buys, 14 holds, and 10 sells.
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A look at Hennes & Mauritz AB Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Hennes & Mauritz AB (H&M) shows a strong position in terms of dividends, growth, and momentum, indicating a positive outlook for the company in the long term. With a high score on dividends, H&M appears to be a favorable choice for investors seeking steady income. The moderate scores on growth and momentum suggest potential for future expansion and market performance.
Although H&M scores lower on value and resilience factors, the company’s strengths in dividends, growth, and momentum could outweigh these concerns in the eyes of investors looking for growth opportunities in the fashion retail sector. H&M’s diverse range of trendy and classic garments, accessories, and cosmetics, along with its presence in both European and U.S. markets, position it well for long-term success in the fast-changing fashion industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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