1328 GMT - H&M earnings beat expectations, driven by a stronger margin, but recent sales are likely weaker and the Swedish fast-fashion retailer is more cautious on the margin outlook than expected, RBC Capital Markets analyst Richard Chamberlain writes. Fourth-quarter sales were a little light compared to consensus, but a 130 basis points rise in gross margin is above the 100 basis points increase expected. Meanwhile, pretax profit at 5.8 billion kronor was above consensus of 5.1 billion kronor, mainly due to strong cost control. The company's recent performance is softer than expected, with sales in constant current projected to be down 2% during December and January versus RBC's estimate for a 0.5% decline. H&M points to a Black Friday effect, later timing of Lunar New Year and sluggish demand in major markets as reasons for the sales drop. Shares fall 1.6%. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
January 29, 2026 08:28 ET (13:28 GMT)
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