HMRZF - H & M: A Margin Expansion Story With Legs
2024-06-09 08:19:13 ET
Summary
- H&M is turning the page.
- More margin expansion is on the horizon.
- Valuations are not that demanding relative to improved fundamentals.
Swedish affordable fashion retailer Hennes & Mauritz, or 'H&M' ( OTCPK:HNNMY ), has had a rough go of it over the last decade. The good news, though, is that light has emerged at the end of the tunnel, and since I last called for caution on the stock (see Hennes & Mauritz: Turbulence Ahead ), H&M has proved me, and most other analysts wrong by cutting its way to earnings growth. Assuming this progress continues through this and next year, H&M now has a very real shot at hitting its 10% operating margin target and, more importantly, nearly doubling its 2023 earnings per share by 2025/2026....
H & M: A Margin Expansion Story With Legs