A majority of equity analysts covering H&M have maintained their sell ratings on the stock, signaling persistent skepticism about the fashion retailer's near-term prospects.
The consensus view among the analyst community is that the factors previously driving margin expansion are waning, with no clear catalyst in sight to reignite sales momentum.
The bearish outlook comes as H&M continues to navigate a challenging environment in the global apparel sector.
Analysts argue that the company has yet to demonstrate concrete evidence of a structural turnaround, leaving investors exposed to continued pressure on both revenue and profitability.
The lack of a visible inflection point in consumer demand has reinforced the cautious stance among market professionals.
This sentiment follows H&M's recent second-quarter results, where operating profit fell short of market expectations.