Lucas has published a company preview report ahead of H&M’s Q2 report release on June 25th. 
We believe H&M’s Q2 (March-May) revenue growth remained soft, driven by weak market data, reflecting declining consumer confidence and cold weather in April. As a result, we have revised our forecasts downwards. Nevertheless, we believe that supply chain efficiency, good operational cost control, and external margin supports will continue to bolster profitability in Q2. In our view, valuation levels remain elevated, and due to ongoing revenue concerns, we still consider the risk-reward ratio unattractive. Consequently, we reiterate our sell recommendation but lower our target price to SEK 150 per share (prev. SEK 155), primarily due to the lowered forecasts.