Sweden's H&M slightly misses Q2 sales estimates on tight inventory

H and M Hennes and Mauritz AB

25/06/2026 07:13

Overview
Sweden apparel retailer's Q2 net sales slightly missed analyst expectations, declining yr/yr
Q2 operating profit missed analyst expectations; gross margin improved to 56.6%
Profitability gains driven by tighter inventory and organizational changes, though sales were lower than planned

Outlook
H&M expects June 2026 sales in local currencies to be on par with prior year
Company plans to open stores in Paraguay in H2 2026 and Argentina in 2027
H&M says market uncertainty and rapid change continue to impact business conditions

Result Drivers
GROSS MARGIN IMPROVEMENT - Co said higher gross margin was driven by greater operational efficiency and good cost control
INVENTORY MANAGEMENT -  Tighter inventory management, limited ability to fully meet demand in some cases
RESTRUCTURING COSTS - One-time restructuring costs of SEK 679 mln related to organizational changes impacted selling and administrative expenses

Company press release: ID:nWkr1d8FJQ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Slight Miss*
SEK 54.83 bln
SEK 55.25 bln (13 Analysts)
Q2 EPS
 
SEK 2.49
 
Q2 Net Income
 
SEK 3.96 bln
 
Q2 Gross Margin
 
56.60%
 
Q2 Operating Profit
Miss
SEK 5.91 bln
SEK 6.38 bln (12 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 14 "hold" and 11 "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 and M Hennes and Mauritz AB is SEK159.00, about 5.7% below its June 24 closing price of SEK168.70
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 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.)