H&M drops as flat June sales fuel demand concerns

H and M Hennes and Mauritz AB

25/06/2026 09:10

** Shares in H&M HMb.ST fall about 3% after the Swedish fashion retailer reported a Q2 operating profit miss and forecast flat June sales, raising concerns over sluggish demand
** "With sales only flat in June this suggests that the European market backdrop might not be as supported by the recent heatwave as the rhetoric suggests," JP Morgan says
** Hit by SEK 679 million in restructuring costs, H&M reports Q2 operating profit of SEK 5.91 billion ($607.11 million), below SEK 6.38 billion seen in LSEG analyst poll 
** Jefferies says H&M's margin progress and cost discipline helped offset weak sales, but adds the broader top-line outlook remains "far from assured"
** "We expect market forecasts for full-year operating profit to be lowered," SB1 Markets says 
** Losses wipe about SEK 8.2 billion off the company's market value
** Shares are on track for their worst day in three months
     
     
($1 = 9.7347 Swedish crowns)

(Reporting by Jesus Calero)
((Jesus.calero@thomsonreuters.com))