Citi sees 'lacklustre' 2026 outlook for European retail

H and M Hennes and Mauritz AB

11/12/2025 10:57

** Citigroup sees a "lacklustre" 2026 outlook for European retail and prefers names that can leverage their business models and/or gain share

** It raises UK-based Sainsbury SBRY.L to "buy" from "neutral" as it ups its FY27 EBIT estimate and notes the stock's -12% drop since November

** It cuts peer B&M BMEB.L to "neutral" from "buy", citing no clear catalysts to lift sales or re-rate the shares despite the already weak sentiment

** The broker also raises Sweden's H&M HMb.ST to "neutral" from "sell", citing better-than-expected cost control; it keeps FY26/FY27 sales forecasts unchanged and expects H&M to benefit from the EU's bringing forward plans to close the small-parcel duty-exemption loophole in 2026

(Reporting by Elviira Luoma)

((Elviira.luoma@thonsonreuters.com))