H&M dives as soft March trading disappoints

H and M Hennes and Mauritz AB

26/03/2026 08:45

** Shares in H&M HMb.ST fall 5.6%, on track for its worst day in a year, after the Swedish fashion giant reported a mixed Q1 update, with disappointing March sales growth

** The group says March sales are expected to increase by 1% y/y, which J.P.Morgan says is slightly below the level implied in consensus

** The broker adds that the current trading is "arguably lacklustre" and raises questions about the durability of H&M's brand re-engagement, particularly as the "test" of new season product was expected to come from March onwards

** JPM also says that the margin outlook is softening amid conflict in the Middle East

** While Q1 EBIT was a beat, the quarter is seasonally very small, the broker notes

** The stock hit its lowest level since September and if losses hold, it will see its worst day in a year

($1 = 9.3658 Swedish crowns)

 (Reporting by Jagoda Darlak)

 ((Jagoda.Darlak@thomsonreuters.com; +48 58 769 65 40;))