H&M Shares Higher
Shares in Swedish retailer H&M are trading a little higher today following news that the company’s retail sales growth jumped 23% in Q1. H&M reported a roughly $5 billion (49.17 billion SEK) jump, year on year, in the quarter ending in February. The strong rise in growth comes despite H&M noted it had reduced scale of sales on its clothing over the quarter, compared with previous cycles.
The fashion group recently joined other global businesses in announcing that it was closing all of its stores in Russia, out of protest at the invasion of Ukraine. Around 4% of its total stores are based in Russia, which is the company’s 6th largest market. Stores have also been closed in Ukraine for now while the violence continues. In terms of assessing the impact of the closure of its Russian stores, data from Credit Suisse projects around a 14% slowdown in terms of local currency growth. Looking ahead, H&M will publish its full quarterly report on March 31st.
Technical Views
HM_B
The sell off in H&M shares has seen price breaking down below the 168.46 and 158.24 levels, with price trading down to test the bear channel low. For now, the 132.34 level has held as support and, with both MACD and RSI turning higher, the focus is on a retest of those broken support levels next. Should we continue lower from here, however, the focus is on the 118.68 level next.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.