First Read: H & M "Conference call feedback" (Neutral) Mahamkali

Research evidence excerpt

First Read: H & M "Conference call feedback" (Neutral) Mahamkali

Global Research

25 June 2026ab

First Read

EquitiesH & M

Conference call feedback Sweden

Retailers, Apparel

12-month rating Neutral

Coming off from the Q2 conference call, key takeaways in our view were:

12m price target SKr169.00

1) Current trading colour - Calendar effects and lower availability in May/Jun weighed

on reported trading. Weather was a key short-term swing factor. HMB highlighted that Price (25 Jun 2026) SKr162.45

they are well positioned as a destination for summer garments as in the last two weeks

there has been a big interest around the summer collections driven by the heatwave in RIC: HMb.ST BBG: HMB SS

Europe Trading data and key metrics

52-wk range SKr194.25-128.35

2) Regional commentary - Weak backdrop in Western Europe (UK, Germany) with Market cap. SKr261b/US$26.7b

subdued consumer demand, although HMB highlighted market share gains in Germany. Shares o/s 1,604m (BFREE)

Southern Europe remains resilient with broadly in-line share, while US trends improving Free float 52%

sequentially but still below desired levels. Avg. daily volume ('000) 2,312

Avg. daily value (m) SKr388.4

3) Actions to improve sales - Focus remains on improving availability (reducing supply Common s/h equity (11/26E) SKr43.7b

gaps), upgrading stores and leveraging data/AI for better assortment relevance. Pricing P/BV (11/26E) 6.2x

strategy centred on“value for money” across price architecture, with selective price Net debt to EBITDA (11/26E) 1.4x

investment rather than outright prices cuts. There is no shift away from full price

discipline where product/experience is strong. EPS (UBS, diluted) (SEK)

UBS Cons.

11/26E 8.26 7.89

4) Gross margin – external factors - Q3 external impact guided to broadly neutral y/y.