Market consensus via FactSet projects a net profit of 4.37 billion kronor for the March-May period, an increase from the 3.96 billion kronor recorded a year prior. This resilience stems from strict cost management and supply chain optimizations that have persisted even as revenue growth stagnates. Over the past year, H&M shares have climbed 31%, reaching approximately 164.50 kronor.

Analysts point to a difficult retail environment characterized by low consumer confidence and unseasonably cold weather in April. Inderes analyst Lucas Mattsson suggests that while H&M initially targeted 1% growth in March, performance in key regions like Germany and Eastern Europe likely dragged quarterly revenue down by 1%. Bernstein researchers highlight that while a weakening U.S. dollar provides a tailwind, the company faces persistent pressure from tariffs and the necessity of sales promotions. Consequently, Bernstein projects a gross margin of 55.7%, trailing the broader consensus estimate of 56.7%.