Update shared on04 Sep 2025
The consensus target for H&M remains steady at SEK132.96, as analysts weigh modest sales growth and cost improvements against ongoing margin pressures, sector competition, and valuation concerns.
Analyst Commentary
- Mixed outlook due to recent quarterly results reflecting continued sales growth but margin pressures.
- Bullish analysts note incremental improvements in cost controls and inventory management supporting gradual price target increases.
- Bearish analysts highlight persistent competitive pressures in the fast-fashion sector and uncertainty in consumer spending, warranting cautious adjustments.
- Some analysts remain cautious due to the company's ongoing investments in digitalization and supply chain, which could delay margin recovery.
- Major brokerages point to valuation concerns given modest earnings growth relative to sector peers.
What's in the News
- H&M opened a new flagship store at The Original Farmers Market in Los Angeles, introducing an upgraded, gallery-like format, advanced RFID-enabled systems, curated collections, and enhanced service offerings, with further LA and Las Vegas expansions planned.
- Partnered with British model Mia Regan to launch a co-designed summer capsule collection featuring unique illustrated designs and utilitarian-inspired pieces available online.
- Commenced a share buyback program, authorized to repurchase up to 8.42% of issued class B shares to optimize capital structure, with the mandate expiring at the next AGM.
- H&M HOME launched a collaboration with Palm Heights boutique hotel, releasing a 23-piece home collection inspired by the hotel's glamorous Caribbean style.
Valuation Changes
Summary of Valuation Changes for H & M Hennes & Mauritz
- The Consensus Analyst Price Target remained effectively unchanged, at SEK132.96.
- The Future P/E for H & M Hennes & Mauritz remained effectively unchanged, moving only marginally from 18.07x to 18.08x.
- The Consensus Revenue Growth forecasts for H & M Hennes & Mauritz remained effectively unchanged, at 1.4% per annum.
Disclaimer
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