H&M: Q2 beats estimates - but stock down

(CercleFinance.com) - On Thursday Hennes & Mauritz reported better-than-expected Q2 earnings and unveiled strong commercial performance for June.


The clothing retailer said its profit after financial items for the three months to end-May came in at 3.6 billion Swedish kronor, against a loss of 6.5 billion Swedish kronor a year ago and the consensus of 3.4 billion Swedish kronor.

Its gross margin rose to 53.9% from 46.3% a year ago, based on local currency sales that jumped 75% from Q2 last year, which was of course ravaged by the outbreak of the pandemic.

The Swedish chain also reported that its June sales were up 25% in local currencies, while RBC analysts expect a point less, with a 24% increase in the current quarter.

Despite these better-than-expected results, H&M shares are currently down about 2% on the Stockholm Stock Exchange, while the STOXX Europe 600 Retail index is up 0.4%.


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