H&M slips after 'strong' Q4, but 'mixed' start to FY 2025/26

H and M Hennes and Mauritz AB

29/01/2026 09:56

** Shares in H&M HMb.ST slip 2.7% lower after the Swedish fashion retailer reported "strong" Q4 results but "mixed" Q1 outlook

** Jefferies says H&M's 2% sales decline in the first two months of the new fiscal year puts consensus expectations for 2.3% full-year sales growth "under scrutiny"

     ** H&M's quarterly sales amounted to 59.2 billion Swedish crowns ($6.73 billion), compared to LSEG-polled analysts' estimate of 59.45 billion crowns

** J.P.Morgan adds Q1 gross margin outlook is "disappointing", as H&M says external challenges including U.S. tariff impacts will be smaller than in Q4

** A potential EU clampdown on a tax loophole for non-EU imports is a long-term challenge, Jefferies says

** It also flags that recent Swedish crown strength could pressure estimates if the Q4 savings are largely one-off

** This cautious outlook would be "unhelpful", with H&M shares trading at a high valuation of over 20 times its 2027 calendar year earnings estimate, Jefferies says

($1 = 8.7972 Swedish crowns)

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))