Lucas has published a new company report on H&M following the Q2 results 
In our view, H&M’s Q2 report confirmed that the big picture remains unchanged: weak revenue development, but improved profitability driven by internal efficiency measures and external margin tailwinds. While we like margin-driven earnings growth, we continue to emphasize the importance of restarting revenue growth to achieve sustainable long-term earnings growth, especially as we expect margin tailwinds to subside in H2’26. We still consider valuation levels high due to ongoing revenue concerns, which were not eased by the modest guidance of flat growth for June. Against this backdrop, we continue to find the risk-reward ratio unattractive and reiterate our sell recommendation and 150 SEK target price for the share.