Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
  1. Homepage
  2. Equities
  3. Sweden
  4. Nasdaq Stockholm
  5. Hennes & Mauritz AB
  6. News
  7. Summary
    HM B   SE0000106270

HENNES & MAURITZ AB

(HM B)
  Report
Real-time Estimate Cboe Europe  -  11:29 2022-10-03 am EDT
107.44 SEK   +3.85%
10:20aH&M : Buy rating from RBC
MD
05:21aBuybacks of shares by H&M during week 39, 2022
AQ
09/30H&M : JP Morgan reiterates its Sell rating
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisionsFunds 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Bangladesh garment export growth seen slowing to 'normal' 15% this year

08/10/2022 | 08:18am EDT
FILE PHOTO: Garments workers go back to their home to have lunch during lunch break Gazipur

DHAKA (Reuters) - Growth in Bangladesh's garment exports could drop to about 15% this year after an unusually strong expansion of more than 30% in 2021, two industry leaders told Reuters on Wednesday, as U.S. and European customers grapple with cost of living pressures.

The garment industry accounts for more than 80% of total exports for Bangladesh, which sells to clients such as Walmart, Gap Inc, H&M, VF Corp, Zara and American Eagle Outfitters - some of which have already flagged weak sales as their customers prioritise basics.

The slowdown follows a surge in sales in 2021 after coronavirus lockdowns eased and government stimulus measures left consumers with disposable cash, leading to what some experts have dubbed "revenge shopping".

"We should be at about 15% growth for the calendar year - this is going to be a normal year," said Miran Ali, a vice president at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). "Last year was an abnormally high jump".

Bangladesh, the world's second-biggest garment exporter after China, saw exports soar 30.4% to $35.8 billion last year, the biggest year-on-year jump in about 25 years. BGMEA data since 1994 shows a big jump in exports in a year is typically followed by slower growth in the next.

Fazlul Hoque, managing director of Plummy Fashions and former president of the Bangladesh Knitwear Manufacturers & Exporters Association, said he too believed exports would rise by about 15% this year.

INPUT COSTS

Hoque said his customers were delaying orders by a month or so and cutting order sizes. One big U.S. client, which he declined to name, initially wanted a small shipment that was to leave this month to be delayed until December.

The client later asked for only a month's delay after Plummy warned them about penalties and other charges for holding on to the stock for longer.

"If they want to delay such small orders for a few months, that means the situation is not really good," Hoque said. "They can't even accommodate the small volume."

The other worry is rising input costs, after Bangladesh on Saturday raised fuel prices by around 50% amid high international prices. Fuel accounts for about 10% of garment companies' total costs, Hoque said, adding that the use of diesel generators had gone up due to lengthy power cuts.

"After the abnormal oil price hike, production costs will go up sharply," said Shahidullah Azim, another BGMEA vice president. "We'll have to bear losses for the already placed order."

He said exports could grow to between $38 and $40 billion this year - or 6%-12% growth - and that the next year "could be even worse if the global economy tips into recession".

Bangladesh last month became the third South Asian country after Pakistan and Sri Lanka to seek a loan from the International Monetary Fund as its foreign exchange reserves shrank and the trade deficit jumped.

(Reporting by Ruma Paul in Dhaka and Krishna N. Das in New Delhi; Editing by David Holmes)

By Ruma Paul and Krishna N. Das


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN EAGLE OUTFITTERS, INC. 4.11% 10.125 Delayed Quote.-61.57%
HENNES & MAURITZ AB 3.85% 107.44 Delayed Quote.-41.90%
LONDON BRENT OIL 0.97% 88.68 Delayed Quote.9.50%
THE GAP, INC. 4.38% 8.57 Delayed Quote.-53.48%
VF CORPORATION 4.43% 31.21 Delayed Quote.-59.15%
WALMART INC. 1.87% 132.211 Delayed Quote.-10.36%
WTI 1.76% 83.419 Delayed Quote.8.90%
All news about HENNES & MAURITZ AB
10:20aH&M : Buy rating from RBC
MD
05:21aBuybacks of shares by H&M during week 39, 2022
AQ
09/30H&M : JP Morgan reiterates its Sell rating
MD
09/30H&M : Barclays remains its Buy rating
MD
09/30H&M : Deutsche Bank sticks Neutral
MD
09/29H&M : Credit Suisse reiterates its Sell rating
MD
09/29H&M : Gets a Sell rating from Goldman Sachs
MD
09/29H&M : UBS gives a Neutral rating
MD
09/29H&M : Jefferies remains Neutral
MD
09/29H&M Pilots Online Returns Fees in UK, Norway; Stock Down 5%
MT
More news
Analyst Recommendations on HENNES & MAURITZ AB
More recommendations
Financials
Sales 2022 221 B 19 902 M 19 902 M
Net income 2022 8 677 M 781 M 781 M
Net cash 2022 4 645 M 418 M 418 M
P/E ratio 2022 19,5x
Yield 2022 6,18%
Capitalization 170 B 15 292 M 15 292 M
EV / Sales 2022 0,75x
EV / Sales 2023 0,74x
Nbr of Employees 155 000
Free-Float 43,6%
Chart HENNES & MAURITZ AB
Duration : Period :
Hennes & Mauritz AB Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends HENNES & MAURITZ AB
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 26
Last Close Price 103,46 SEK
Average target price 113,22 SEK
Spread / Average Target 9,43%
EPS Revisions
Managers and Directors
Gudrun Helena Lundberg Helmersson Chief Executive Officer
Adam Gustav Karlsson Chief Financial Officer
Karl-Johan Erling Persson Chairman
Alan Boehme Chief Technology Officer
Anders Gunnar Dahlvig Independent Director
Sector and Competitors
1st jan.Capi. (M$)
HENNES & MAURITZ AB-41.90%15 292
INDITEX-25.41%64 932
KERING-35.13%55 248
FAST RETAILING CO., LTD.17.46%54 175
ROSS STORES, INC.-26.26%29 247
PRADA S.P.A.-27.05%11 865