RBC Expects H&M to Report Higher Sales in Fiscal Q3

11:37 AM EDT, 09/21/2026 (MT Newswires) -- RBC Capital Markets expects H&M Hennes & Mauritz (HM-B.ST) to see annual growth in fiscal third-quarter sales, at constant currency, when the Swedish clothing company releases its quarterly report on Thursday. "For Q3 we forecast sales in cc +1% yoy with EBIT of SEK5.2bn, a little above consensus, due to tighter assumed cost control. We note that June sales in cc were flat yoy but H&M has easier comps in July and August. For September sales in cc H&M faces a fairly undemanding 1 year comparable of flat, albeit its 2024 Sept sales were up +11% yoy. For Q4 2025 its sales were c.+2% yoy, helped by a fairly promotional November and sales brought forward from December," according to RBC's European Retailing report published Monday. Looking ahead to the final quarter of H&M's current fiscal year, the research firm forecasts a 1.2% year-over-year rise in constant-currency sales, expecting the impact of tariff refunds to begin coming through in the fiscal second half. "At the time of the H1 results, the external factors impact on gross margin in Q3 was assessed by H&M to be neutral, due to fading positive factors eg fx and tougher comps. There is normally a 6-8 month lag before fibre prices affect the assortment, so this is more relevant for late Q4/Q1 2027. Freight is the main change in gross margin external factors in Q3 as the cost of freight has gone up," analysts noted. RBC rates the stock at sector perform, with a price target of 175 kronor.