H&M Stock (0HBP) Jumps on Possible Tariff-Fueled Price Increases
H&M (GB:0HBP) stock rallied on Thursday after the Swedish fashion company said it's considering price increases. The company didn't directly attribute this to tariffs, but it suggested as much. CEO Daniel Erver said during its earnings call that, 'We are starting to see some competitors increasing prices and this is something we are of course looking into to ensure we remain competitive.'
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Adding to that were statements included in its latest earnings report, including claims that results were negatively affected by 'higher purchasing prices as a result of a more expensive US dollar and higher freight costs.' It also stated it will continue to monitor macroeconomic and geopolitical developments during these uncertain times.
While H&M included these comments in its earnings report, it didn't provide a detailed breakdown of how tariffs were affecting its business. Even so, investors will keep in mind that the U.S. is the company's second-largest market. With much of the company's supply line based in China, tariffs will likely have a strong effect on its operations.
What's Next for H&M?
There are two major catalysts that H&M investors want to watch out for. The first is the July 9 deadline for tariff negotiations. This will likely affect how President Donald Trump applies tariffs to other countries. The results of these negotiations could have a large impact on the stock market, including 0HBP shares.
The next big catalyst is the end of a tariff pause with China. This 90-day hold will end on Aug. 12, 2025. Depending on the results of these negotiations, this could be another major inflection point for stocks. Considering H&M's reliance on Chinese suppliers, this could have a major impact on its operations.
H&M stock was up 1.35% as of Thursday morning but is still down 9.95% year-to-date. The shares have also fallen 24.17% over the past 12 months.
Is H&M Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for H&M is Moderate Sell, based on one Buy, five Hold, and four Sell ratings over the past three months. With that comes an average 0HBP stock price target of $134.89, representing a potential 3.2% upside for the shares.
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