H&M

H&M’s Q3 report once again confirmed that the overall investment story remains unchanged with weak top-line growth but improved profitability through solid cost control and a one-off tariff benefit.

We expect only modest top-line growth amid ongoing brand traction challenges and a still difficult market, with profitability holding broadly steady even as gross margin tailwinds fade and operating expenses rise.

In our view, H&M's Q2 report confirmed that the overall story remains unchanged: weak top-line momentum, but improved profitability driven by internal efficiency measures and external margin tailwinds.

We believe revenue growth remained soft in H&M's Q2, driven by weak market data, reflecting softer consumer confidence and cold weather in April.