Earnings beat lifts H&M shares to nearly top of STOXX

H and M Hennes and Mauritz AB

26/06/2025 08:31

** Shares in H&M HMb.ST are up nearly 8% after the Swedish fashion retailer delivered Q2 earnings ahead of consensus expectation

** H&M posted EBIT of SEK 5,914 million ($626.6 million) for the second quarter, a tad higher than estimates seen in LSEG poll and 6% ahead of consensus cited by Jefferies and Deutsche Bank

** "We think H&M has taken various steps to improve its offer for customers, which should lead to a stronger sales performance in time," RBC analyst says

** RBC adds it sees potential for the retailer to move closer to a double-digit operating margin goal over time

** "While we anticipate that the impact of external factors will be positive in H2, the uncertainty surrounding tariffs persists," adds Inderes analyst Lucas Matsson

** The stock, on track for its best day since March 2024, is the second best performer on pan-European STOXX 600 index .STOXX

($1 = 9.4385 Swedish crowns)

 (Reporting by)

 ((Anna.chaberska@thomsonreuters.com;))