Carnegie does not believe that an improvement of the H&M’s sales or earnings, that would imply a substantial recovery for the klädbolaget, is imminent. In addition, there are growing concerns for the sharp the drop in sales per store.
It is clear from an analysis dated may 30 where the recommendation is sell and riktkursen sek 200 is repeated.
”Försäljningsmomentum has continued to deteriorate over the past six months and a dramatic shift in consumer behavior seems to be the main reason for H&M:s problem. Significant steps have been taken to improve the company’s omni-channelerbjudande, but we suspect that it will take a long time to reverse the trend and we fear that the sales and profits per store can continue to deteriorate in the short and medium term,” writes Carnegie in the analysis.
Carnegie’s forecast for H&M’s sales in may has been reduced to +6 per cent, from the previous +10%, and estimates for earnings per share in the coming years has been revised down by 1-2%.
The assumption of a lower sales and profit is counteracted in part by the recent weakening of the dollar, something which, according to the Carnegie should be slightly positive for the H&M’s gross margin.
Carnegie went from buy to keep in the beginning of 2016 and then put the sell at the H&M in september 2016, when the share accounted for just over sek 240. On Tuesday, changing the share owner around 222 dollars.
Tradingportalen/Agency Directly.
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