Hennes & Mauritz (1K) | Buy | Margin recovery despite subdued growth

研报英文原文证据摘录

Hennes & Mauritz (1K) | Buy | Margin recovery despite subdued growth

#EstimatesRevision

Release date: 26 June 2026

Company research

BuyHennes & Mauritz

Sweden | Textile & apparel Beta Profile: MCap: SEK267.7bn

Target Price: SEK200.00 Change in TP: 0.0 % Bloomberg: HMB SS Reuters: HMb.ST

Current Price: SEK167.70 Change in Sales: -0.4% 26E/-0.2% 27E Free float 26%

Up/downside: 19.3% Change in Adj EBIT: -0.2% 26E/-0.7% 27E Avg. daily volume (SEKm) 716.1

YTD abs performance -9.8% Market data: 25 June 2026 Change in Adj. EPS: 0.9% 26E/-0.7% 27E

52-week high/low (SEK) 194.25/128.35

Margin recovery despite subdued growth Price performance

Why this report?

We make only minor adjusted earnings revisions following H&M's Q2 results,

where profitability again exceeded expectations despite subdued top-line

trends. Sales were broadly flat in local currencies, while adjusted EBIT

increased 11% YOY and exceeded our forecast by c. 2%. The adjusted EBIT

margin expanded by 1.6pp YOY to 12.0%, reflecting ongoing progress on

profitability, supported by supply chain efficiencies and disciplined cost

control. However, trading into Q3 has started somewhat softer than expected,

with June sales guided to be broadly flat in local currencies, leading us to

lower our Q3E local currency sales growth assumption to 1%. We continue to

see scope for self-help-driven margin improvement, modelling a 10% EBIT

margin by 2027E (vs c. 9% consensus) and c. 9% EBIT CAGR over 2025–28E.

Finally, H&M's solid balance sheet continues to support shareholder returns, FY to 30/11 (SEK) 11/26E 11/27E 11/28E

with potential further buybacks (not in our forecasts) complementing a c. Sales 220,963 227,532 234,337

EBITDA adj. 40,143 43,488 45,360

4.5% dividend yield. We reiterate Buy and our TP of SEK200. EBIT adj.