1305 GMT - H&M's multi-year recovery potential depends on how long it will take and how much it will cost to deliver, HSBC analysts write. Management's previous 2024 EBIT margin target of 10% is now a medium-term target, which suggests it will be some time before strategic initiatives deliver, they say. The Swedish clothing retailer expects currencies and freight rates to hit cost of goods sold to a greater extent in the first quarter, but HSBC expects the pressure to persist into the second quarter at least. In addition, current trading in the first eight weeks of fiscal 2025 got off to a slower-than-expected start, they add. HSBC downgrades H&M to hold from buy and lowers its target price to 145 Swedish kronor from 185 kronor. Shares fall 0.2% to 139.10 kronor. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
March 05, 2025 08:06 ET (13:06 GMT)
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