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Hennes & Mauritz AB Class B HM B Stock Quote

| Rating as of

Morningstar‘s Stock Analysis HM B

Valuation
Currency in SEK
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Investing in H&M Shares Comes With Medium Uncertainty

Jelena Sokolova, CFA Senior Equity Analyst

Business Strategy and Outlook

| Jelena Sokolova, CFA |

Although we still believe that Hennes & Mauritz, or H&M, (the world’s second-largest fashion company in terms of revenue) benefits from scale advantages and brand recognition, we think these are no longer sufficient to guarantee medium- to long-term economic profits in an increasingly competitive environment, hence our no-moat rating for the company. Further, the company's responsive supply chain initiatives seem to no longer be working, as sales faltered and inventory days grew from about 117 in 2015 to 145 days in 2021, while fixed store costs are becoming an increasing drag on profitability as store traffic falls in mature markets.

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Key Statistics HM B

Company Profile HM B

Business Description

Hennes & Mauritz is a global multibrand fashion conglomerate that was founded in 1947. Its flagship H&M brand accounts for most of revenue (90%), but the newer brands (COS, &Other Stories, Monki, Weekday, and newly launched Arket) are growing a bit faster. H&M commands low-single-digit market share in a fragmented global apparel market. Just under 70% of revenue is generated in Europe and Africa, 13% in Asia and Oceania, and 20% in North and South America. The company operates around 4,800 stores globally (60% of those in Europe), of which 4,242 are H&M-brand stores.

Contact
Master Samuelsgatan 46A
Stockholm, SE-106 38, Sweden
T +46 87965500
Industry Apparel Manufacturing
Most Recent Earnings May 31, 2022
Fiscal Year End Nov 30, 2022
Employees 155,000

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