Sweden's H&M Q1 sales miss estimates on currency headwinds

H and M Hennes and Mauritz AB

26/03/2026 07:11

Overview

Sweden apparel retailer's fiscal Q1 net sales declined and missed analyst expectations

Fiscal Q1 operating profit increased and beat analyst estimates, aided by improved gross margin

Company proposes dividend increase and share buyback authorization at upcoming annual meeting

Outlook

H&M expects March 2026 group sales to rise 1% in local currencies vs year-ago month

Company says positive sales trend continued into March, supported by spring collections

H&M cites challenging macroeconomic environment and increased geopolitical uncertainty for outlook

Result Drivers

CURRENCY IMPACT - Co said net sales in SEK were negatively affected by currency translation due to a strengthened Swedish krona

COST CONTROL - Co said improved gross margin and lower markdown costs contributed to higher operating profit, per CEO Daniel Ervér

INVENTORY EFFICIENCY - Co said improved inventory productivity reduced stock-in-trade and operating working capital

Company press release: ID:nWkr9VJZkN

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
SEK 49.61 bln
SEK 50.57 bln (12 Analysts)
Q1 EPS
SEK 0.45
Q1 Net Income
SEK 704 mln
Q1 Gross Margin
50.70%
Q1 Operating Profit
Beat
SEK 1.51 bln
SEK 1.39 bln (11 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 13 "hold" and 12 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories retailers peer group is "buy."

Wall Street's median 12-month price target for H & M Hennes & Mauritz AB is SEK170.00, about 2.6% below its March 25 closing price of SEK174.55

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)