H&M: not out of the woods quite yet, according to BarCap

(CercleFinance.com) - H&M's trading update on Monday provided a pleasant surprise for the first time in several months, although the Swedish fashion retailer is "not out of the woods quite yet," say analysts at Barclays Capital.


"The language around the logistics system transition leaves us concerned about profitability in the medium-term," the British broker writes in a research note.

Barclays notes that implementation of the new logistics systems "considerably affected" sales and profits in some key markets, while Germany has yet to fully adopt the new system.

BarCap hence maintains its "underweight" rating on the stock, as well as its target price of 118 Swedish kronor.

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