H&M's Cost Inflation Won't Compress Margins as Much as Initially Expected -- Market Talk

Dow Jones12-11

1001 GMT - H&M's cost inflation is anticipated to be lower than originally expected, Citi analysts say. Citi had initially rated the stock as sell based on its cost inflation of typically around 2%, which the analysts thought would compress margins. Now the analysts estimate that in the first three quarters of the fiscal 2025, this will come in close to flat. For the 2026 and 2027 fiscal years, the analysts now expect 0.5% growth in selling, general and administrative inflation. This is below their previous forecast and also economists' consumer price index growth expectations of 2%, they write. Shares are up 2.2% at 177.9 Swedish Krona. (aimee.look@wsj.com)

(END) Dow Jones Newswires

December 11, 2025 05:01 ET (10:01 GMT)

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