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The global fashion business journal

Oct 1, 20202:27pm

Citi cuts forecasts for Inditex and H&M amid coronavirus crisis

The analysts expect the epidemic to have a greater impact in Europe in the second quarter of the year, affecting the two largest European fashion groups.

Mar 10, 2020 — 5:05pm
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Citi cuts forecasts for Inditex and H&M amid coronavirus crisis

 

 

Coronavirus threatens the results of the two largest fashion retailers. Analysts at Citi have cut their forecast for both Inditex and H&M, expecting a coronavirus impact to reach Europe in the second quarter of the year.

 

The firm has lowered its earnings per share estimate for Inditex by 11% for 2021 and 8% for 2022 amid potential impacts of Covid-19. Citi quotes Inditex’s exposure to Southern Europe, where the crisis has grown in recent weeks.

 

For 2020, Citi expects a solid evolution. The firm has also lowered its price target on Inditex to 32 euros, from 36 euros, and keeps a buy rating on the shares. For H&M, Citi expects a revenue growth of just 1.5% in 2020 and a fall in its net profit of 6.3%.  H&M increased its profit in 2019 for the first time in four years.

 

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