@lucas.mattsson has commented on H&M’s results. 
H&M’s Q2 results were largely in line with our operational expectations, and we made only minor upward adjustments to our short-term forecasts. The company’s performance and outlook suggest that a significant recovery will take time to materialize. In our view, short-term drivers remain weak, including low consumer confidence and slow margin recovery. As a result, we believe the stock is already priced sufficiently well for high earnings growth (2025e P/E: 20x). Therefore, we reiterate our Reduce recommendation and a target price of SEK 130 for the stock.
Quoted from the report:
For 2026-2027e, we believe the pace of margin improvement will be gradual, with revenue growth, coupled with continued cost efficiencies, driving an EBIT margin increase from 7.4% in 2024 to approximately 9% in 2027. While H&M continues to target a long-term EBIT margin of 10%, we do not expect this target to be met, given the highly competitive environment, which we expect will put pressure on pricing power over time.
https://www.inderes.fi/research/handm-q225-odotamme-myynnin-vetamaa-katteen-elpistumista