H&M Surges Most in 17 Years on Revenue Growth

The video discusses H&M's recent sales performance, highlighting a 4% increase in local currency terms and a 9% increase when accounting for currency effects. Inventory issues are a major concern, with a significant backup in stock. The video explores the potential for margin improvement if inventory is managed effectively. It also considers the possibility of a management buyout, given the company's market cap and family control. The discussion includes the impact of inventory on margins and the implications of a buyout.

What was the reported sales increase for H&M in local currency terms after three soft quarters?

• 8%

• 4%

• 2%

• 6%

How did currency fluctuations affect H&M's reported sales increase?

• They boosted the sales increase

• They caused a decline in sales

• They decreased the sales increase

• They had no effect

What is a potential benefit of reducing inventory for apparel retailers like H&M?

• Increase in gross margin and profit

• Increase in inventory days

• Decrease in store openings

• Reduction in market cap

What is one of the challenges of a management buyout for H&M?

• High market cap and family ownership

• Lack of inventory

• Too many store closures

• Excessive profit margins

Why might taking H&M private be challenging despite family control?

• High debt levels and fragile margins

• Strong public support

• Excessive inventory reduction

• High profit margins