H & M Hennes & Mauritz AB: 1H26 results call - key takeaways

Research evidence excerpt

H & M Hennes & Mauritz AB: 1H26 results call - key takeaways

Equity Research

European General Retail

25 June 2026

H & M Hennes & Mauritz AB

1H26 results call - key takeaways

Incremental colour from the call. Hard yards ahead on path to

12-14% stock levels, with lighter stock putting pressure on

allocation and distribution. Availability disruption weight on HMb.ST/HMB SS UNDERWEIGHT

European General Retail NEUTRAL

sales, particularly in May-June in Western Europe, amid Price Target SEK 150.00

logistics network consolidation. Price (24-Jun-26) SEK 168.70

Potential Upside/Downside -11.1%

Source: Bloomberg, Barclays Research

Management admitted it underperformed on sales versus its own expectations and attributes

this in part to availability issues amid logistics consolidation, with the impact particularly acute

in May and June in Western Europe (consistent with regional trends). Earnings growth continues European General Retail

to be driven by gross margin tailwinds and cost savings, with sales still subdued more than two Matthew Clements

+44 (0)20 7773 6018years into the turnaround. H&M's house is in much better order - inventory efficiency has

matthew.clements@barclays.com

improved, operating costs are well controlled and supply chain initiatives are supporting buying Barclays, UK

terms and sourcing capabilities - yet there are limited signs of brand reinvigoration, which we

think is key for longer-term sustainable earnings growth. And, as management flagged on the Imogen Doyle

+44 (0)20 7773 2605call, the hard yards on inventory efficiency are ahead with tighter stock levels now putting

imogen.doyle@barclays.com

pressure on allocation and distribution, while gross margin tailwinds are fading into 2H. Barclays, UK

Key takeaways from the earnings call:

1.1.