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Barron’s: H&M’s stock has been cut in half over 3 years — here’s how to play the retailer

Hennes & Mauritz shareholders just endured another tough stretch, with H&M’s stock unraveling by some 20% since mid-December. Bears are growling that the fast-fashion powerhouse’s days as a growth story are over.

In the weeks ahead, the Swedish retailer might win back some investors as it gives its annual results on Jan. 31 and holds its first-ever capital markets day, a meeting for institutional investors, on Feb. 14.

But there is also a chance that the pessimists are right, and a big rally isn’t in the cards at this point.

“The company may continue to aspire to 10% to 15% annual sales growth, but with actual performance so weak and future store openings now set to be scaled back significantly, we think the days of consensus assuming that a ‘return to growth’ is just around the corner are coming to an end,” wrote Morgan Stanley analysts in a recent note.

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