H&M: Goldman Sachs confirms 'Sell' rating
(CercleFinance.com) - H&M (Hennes & Mauritz) has announced Q3 pre-tax profit of almost 2 billion Swedish kronor.
In Q3 (June to August), its sales fell by 19% to 50.87 billion Swedish kronor.
Goldman Sachs points out that following the 25% drop in foreign currencies in June, this led to a negative FX impact of -11.5% on July/August sales.
"Preliminary results show PBT for 3Q20 at c.SEK 2bn, driven by more full-price sales. Given this PBT beat is split approximately evenly between gross profit and opex, it suggests 3Q20 gross margin is -300bp".
The broker has set a target price of 120 Swedish kronor for the share and maintains a sell rating on it (current price: 160 Swedish kronor).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
In Q3 (June to August), its sales fell by 19% to 50.87 billion Swedish kronor.
Goldman Sachs points out that following the 25% drop in foreign currencies in June, this led to a negative FX impact of -11.5% on July/August sales.
"Preliminary results show PBT for 3Q20 at c.SEK 2bn, driven by more full-price sales. Given this PBT beat is split approximately evenly between gross profit and opex, it suggests 3Q20 gross margin is -300bp".
The broker has set a target price of 120 Swedish kronor for the share and maintains a sell rating on it (current price: 160 Swedish kronor).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.