- H&M’s operating profit for the third quarter was SEK 4.91 billion, which surpassed analysts’ estimate of SEK 3.74 billion.
- Pretax profit was reported at SEK 4.32 billion, higher than the expected SEK 3.29 billion.
- Total sales reached SEK 57.02 billion, slightly below the anticipated SEK 57.12 billion mark.
- The gross profit stood at SEK 30.14 billion, exceeding the forecasted SEK 29.42 billion.
- H&M achieved a gross margin of 52.9%, which was above the estimated 51.4%.
- The operating margin came in at 8.6%, compared to a projected 6.55%.
- Net income for the period was reported at SEK 3.23 billion.
- H&M currently operates a total of 4,118 stores worldwide.
- Revenue for the first nine months was distributed regionally as follows:
- Nordics: SEK 15.50 billion
- Western Europe: SEK 57.50 billion
- Eastern Europe: SEK 15.56 billion
- Southern Europe: SEK 22.66 billion
- Americas: SEK 38.86 billion
- Asia, Oceania & Africa: SEK 22.22 billion
- Analyst recommendations include 5 buys, 12 holds, and 14 sells.
Hennes & Mauritz AB on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Hennes & Mauritz AB (H&M Group) following the release of the company’s first quarter 2025 results. In their report titled “H&M (Hennes & Mauritz AB): Initiation of Coverage- The High-Stakes Bet on Value,” Baptista Research highlights a mixed performance by H&M as it strives for long-term profitable growth. Sales in Swedish krona saw a 3% rise, while local currency sales increased by 2%. Strong sales were noted in Western, Southern, and Eastern Europe, with standout performances in Germany and Poland. However, weaker sales in Northern Europe, including the Nordics and the U.K., as well as in the U.S., pose challenges. Baptista Research aims to delve into various factors that could impact the company’s stock price and is utilizing a Discounted Cash Flow (DCF) methodology to independently evaluate H&M’s valuation.
A look at Hennes & Mauritz AB Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
The long-term outlook for Hennes & Mauritz AB, also known as H&M, appears to be promising based on the Smartkarma Smart Scores. The company receives a high score of 5 for Dividend, indicating a strong payout to shareholders. Additionally, H&M scores well with a 4 in Momentum, suggesting a positive trend in the company’s performance. While the Value score of 2 reflects some room for improvement, Growth and Resilience scores of 3 each demonstrate stability and potential for expansion.
H&M, a renowned fashion retailer offering trendy and stylish clothing for individuals of all ages, continues to expand its presence across Europe and the United States. With a focus on providing fashionable apparel, accessories, and cosmetics, H&M caters to a diverse customer base. Despite some areas for enhancement in terms of value and growth, the company’s strong dividend payouts and overall momentum indicate a solid foundation 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.
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