- H&M’s first-quarter operating profit was SEK 1.20 billion, falling short of the estimated SEK 1.94 billion.
- Sales reached SEK 55.33 billion, a growth of 3.1% year over year, but below the expected SEK 55.84 billion.
- Gross profit was reported at SEK 530 million, significantly below the forecasted SEK 28.24 billion.
- The gross margin came in at 49.1%, missing the estimate of 50.8%.
- Operating margin was 2.2%, which is lower than the expected 3.47%.
- Net income for the first quarter was SEK 590 million.
- The number of net new stores decreased by 40, against an estimate of a decrease by 33.06.
- H&M’s total store count went down to 4,213, a 2.9% decline from the previous year.
- Sales in March are projected to rise by 1% in local currencies.
- Among analysts, there are 8 buy ratings, 14 hold ratings, and 10 sell ratings for H&M’s stock.
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
Analysts foresee a mixed long-term outlook for Hennes & Mauritz AB, with varying scores in different areas. H&M boasts a high dividend score of 5, indicating robust returns to shareholders. The growth score of 3 suggests moderate long-term expansion potential, while the momentum score of 3 hints at stable upward trends. However, areas like value and resilience score lower at 2 each, pointing towards challenges in terms of value proposition and adaptability to market changes.
Hennes & Mauritz AB, commonly known as H&M, is a renowned fashion retailer offering trendy clothing and accessories for diverse customer segments. With a strong presence in Europe and the United States, the company caters to women, men, teens, and children with a wide range of stylish garments. Investors will closely monitor how H&M navigates through the value and resilience aspects to capitalize on its promising dividend, growth, and momentum scores for long-term success.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
