Hennes & Mauritz (OTCMKTS:HNNMY) Posts Quarterly Earnings Results, Hits Estimates

Hennes & Mauritz (OTCMKTS:HNNMY) issued its quarterly earnings data on Wednesday. The company reported $0.05 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.05, Zacks reports. The company had revenue of $5.98 billion for the quarter, compared to the consensus estimate of $5.84 billion. Hennes & Mauritz had a return on equity of 31.51% and a net margin of 5.55%.

Hennes & Mauritz Stock Down 1.5%

Shares of HNNMY stock opened at $3.26 on Friday. Hennes & Mauritz has a fifty-two week low of $3.21 and a fifty-two week high of $4.25. The firm has a market capitalization of $22.89 billion, a PE ratio of 20.38 and a beta of 1.12. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.53 and a current ratio of 1.07. The stock’s 50-day simple moving average is $3.53 and its 200-day simple moving average is $3.54.

Key Headlines Impacting Hennes & Mauritz

Here are the key news stories impacting Hennes & Mauritz this week:

• Positive Sentiment: H&M reported third-quarter operating profit growth that exceeded expectations, supported by improved margins, cost savings and tariff benefits. Sales for June through August increased 1% in local currencies, slightly ahead of a 0.7% UBS forecast. H&M’s operating profit grows more than expected in third quarter
• Positive Sentiment: Quarterly earnings per share were $0.05, in line with consensus, while revenue of $5.98 billion exceeded analysts’ $5.84 billion estimate. H&M also reported a 31.51% return on equity and a 5.55% net margin. Hennes & Mauritz earnings results
• Neutral Sentiment: Short interest rose 175.4% to 50,348 shares as of September 15, but short positions represented 0.0% of shares outstanding and only 0.1 days of average trading volume. The increase is notable but currently appears too small to be a major trading catalyst.
• Negative Sentiment: Investors were disappointed by the company’s expectation for only 1% sales growth in September in local currencies. The modest outlook overshadowed the earnings beat and raised concerns that demand momentum remains weak. H&M Stock Slides Despite Earnings Beat on Sluggish Sales Growth
• Negative Sentiment: Goldman Sachs maintained a Sell rating on Hennes & Mauritz, reinforcing the cautious analyst view and adding to pressure on the shares. Goldman Sachs maintains a Sell rating

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Pareto Securities downgraded shares of Hennes & Mauritz to a “sell” rating in a research report on Friday, June 26th. Citigroup reaffirmed a “neutral” rating on shares of Hennes & Mauritz in a research report on Tuesday, August 18th. Finally, Zacks Research raised Hennes & Mauritz from a “strong sell” rating to a “hold” rating in a research report on Friday, August 14th. Four research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Hennes & Mauritz currently has a consensus rating of “Reduce”.

Hennes & Mauritz Company Profile

Hennes & Mauritz AB, commonly known as H&M, is a Sweden-based fashion retailer that sells clothing, accessories, footwear, beauty products and home furnishings. Its business spans design, sourcing, retail and online sales, with products aimed at women, men and children across a range of price points.

The company was founded in 1947 by Erling Persson as a women’s clothing store called Hennes in Västerås, Sweden. After acquiring the hunting and menswear retailer Mauritz Widforss in 1968, it adopted the Hennes & Mauritz name and expanded into menswear and children’s apparel.