Europe Movers: H&M, Inchcape, Serco

Inga Muller
26 Jun, 2025
Frankfurt

H&M AB traded up 7.5% at 139.55 krona after the Swedish apparel company reported results for the fiscal second quarter ending on May 31.

Net sales declined to SEK 56.71 billion from SEK 59.60 billion, profit declined to SEK 3.98 billion from SEK 5.08 billion, and earnings per share fell to SEK 2.48 from SEK 3.15 a year ago.

Operating profit in the second quarter amounted to SEK 5.91 billion, compared to SEK 7.10 billion, corresponding to an operating margin of 10.4%, compared to 11.9% in the previous year, respectively.

Net sales in the first half of the year edged down to SEK 112.05 billion from SEK 113.27 billion, net income dropped to SEK 4.57 billion from SEK 6.32 billion, and earnings per share fell to SEK 2.85 from SEK 3.91 a year earlier.

Operating profit in the six-month period amounted to SEK 7.12 billion, compared to SEK 9.17 billion, with an operating margin of 6.4%, compared to 8.1% in the prior year, respectively.

H&M is expected to pay a cash dividend of SEK 3.40 per share on November 12.

Inchcape Plc. gained 5.4% to 718.00 pence after the UK-based automotive distributor released its trading update ahead of half-year results ending on June 30.

The company said it expects a limited tariff-related impact on its business operations.

Inchcape reported continued improvement in the Americas, Australia, Europe, and Africa, while certain markets in Asia are facing ongoing headwinds.

The company has won nine distribution contracts year-to-date, including two additional awards during the fiscal second quarter of 2025.

The automotive distributor guided growth in full-year earnings per share, driven by profit growth and ongoing share buybacks, as £150 million of share repurchases were already completed, while £100 million remained under repurchase authorization.

Serco Group Plc. advanced 1.3% to 196.10 pence after the UK-based defense, health, and transport government services provider released its trading update for the first six months of 2025.

Revenue increased 2% to £2.4 billion from £2.36 billion, and underlying operating profit fell to £140 million from £142 million a year ago.

Overall orders amounted to £3 billion in the first half of the year, with a larger share from the defense order.

The company completed the acquisition of Northrop Grumman’s mission training and satellite ground network communications software business (MT&S), enhancing capability and scale in the U.S. and international defense markets.

Serco guided full-year revenue to improve to approximately 1% due to higher than anticipated activity levels in the immigration sector, as overall revenue outlook was revised higher to £4.9 billion from £4.8 billion compared to £4.8 billion in 2024.

The underlying operating profit for the full year is estimated at £260 million, compared to £274 million a year earlier, reflecting impacts from higher UK national insurance contributions and the conclusion of the Australian immigration contract.