Executive Summary

• Swedish fast-fashion chain H&M reported revenue of SEK 43,691 million for 1Q16, which ended February 29, 2016. This was up 8.5% year over year and broadly in line with the consensus estimate of SEK 43,702 million.
• Reported EPS was SEK 1.54 for 1Q16, down 29.4% from SEK 2.18 in the same period in FY15, but beating the consensus estimate of SEK 1.47.
• H&M’s CEO noted that noted that the unusually warm autumn resulted in much of the winter stock being unsold, and that the strong US dollar adversely affected sales and purchasing costs in the first quarter. He added that the company expects the currency effects to neutralize or have a slightly positive impact through the rest of the year.