H&M has advanced the sales of the group in the third quarter (from June 1 to August 31) of the year. As indicated by the Swedish textile, sales increased by 3%, to 57,450 million Swedish crowns (5,360 million dollars / 5,199 million euros) in the third quarter. In local currency, net sales decreased 4%.
The company ensures that The quarter got off to a weak start, as did the industry in many of the group’s main markets. However, sales picked up throughout the quarter with a better start to the fall collections than last year.
Some figures that come after Inditex will announce sales of 14,845 million euros, which represented 24.5% of those registered a year ago, with a record profit of 1,794 million in the quarter.
While Inditex accumulates continuous improvements in its recommendations, H&M has experienced a downgrade in consensus recommendations in recent sessions. DNB Markets has been the last to lower the recommendation from buy to hold on the value; Barclays lowered its price target to SEK 150, Berenberg cut its recommendation on the Galician textile to sell while UBS lowered its estimate on the stock to neutral from buy.
Analysts’ average price target on the stock is SEK 132.18. This leaves a potential 17% over the company’s current trading price.
H&M widens the gap it maintains on the stock market with Inditex
Of the 30 analysts who currently cover the value, 6 are more “optimistic” with its future evolution and maintain a buy recommendation compared to 14 who remain neutral and 10 who choose to recommend the sale of the stock in the portfolio, according to data from Reuters. Some recommendations reflect the evolution of the stock market value that, since the beginning of the year, has dropped more than 34%, accusing the gap that it maintains with Inditex which has lost just over half (-18.6%), since the beginning of 2022.
And, in fact, if you look at it with a broader investment horizon. In the last ten years, Inditex has returned to its shareholders a return of more than 58% compared to -33% for its Swedish counterpart.