H&M: UBS still on hold after Q1 results

(CercleFinance.com) - UBS maintains its neutral rating on the H&M stock, along with its target price of 119 SEK after the clothing retailer announced its Q1 profit.


"Q1'23 EBIT meaningfully higher vs VA cons. on better gross margin. March trading +4% yoy," analysts said.

In the three months to 28 February, operating profit was 725 million SEK, i.e. a margin of 1.3%, compared to 458 million SEK - or 0.9% of sales - a year earlier, significantly above the consensus, which forecast a net loss of 1.1 billion SEK.

H&M also confirmed that it expects to achieve an operating margin of 10% as early as next year.


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