H&M Results Show Sales Resilience in Tough Market -- Market Talk

0916 GMT - H&M's third-quarter underlying EBIT is broadly in line with consensus, driven mainly by resilient sales in a tough macro context, Jefferies analyst James Grzinic writes. The Swedish retailer's underlying gross margin miss was offset by good cost control, he adds. Guidance for 1% sales growth in September will likely underpin consensus estimates for the fourth quarter at 1.2%, given that weather-impacted demand might have shifted the purchase of garments later into the quarter, Grzinic says. Looking ahead, rebuilding future profit will be more reliant on accelerating top-line delivery, given the reduced opportunities for cost savings and higher input cost pressures, he says. "The broader macro outlook is an added complication, even if strongly accelerating inflation at Chinese platforms in Europe could be a meaningful offset." Shares fall 2.4%. (dominic.chopping@wsj.com)

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September 24, 2026 05:16 ET (09:16 GMT)