H&M's Recovery Potential Depends on Timing, Cost -- Market Talk

Dow Jones

Mar 05, 2025

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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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&amp;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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 05, 2025 08:06 ET (13:06 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>H&M's Recovery Potential Depends on Timing, Cost -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nH&M's Recovery Potential Depends on Timing, Cost -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-03-05 21:06</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1305 GMT - H&amp;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&amp;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) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 05, 2025 08:06 ET (13:06 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0516423091.SGD","symbol_name":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2517914218","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2517914218","pubTimestamp":1741179960,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"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. 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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) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 05, 2025 08:06 ET (13:06 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}