H & M Hennes & Mauritz ABCHIX:HMBS +0.50%74 Gross Margin % is 50.67% as of Feb. 2026, which is 4% below its 10-year median of 52.74. GuruFocus rates CHIX:HMBS with a GF Score™ of 74/100 and a GF Value™ of kr155.07 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,026 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks better than 81.09% on this metric.
CHIX:HMBs's Gross Margin % is ranked better than 81.09% of 1026
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.51
vs CHIX:HMBs: 53.82
H & M Hennes & Mauritz AB had a gross margin of 50.67% for the quarter that ended in Feb. 2026 => Durable competitive advantage
H & M Hennes & Mauritz AB (CHIX:HMBs) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
H & M Hennes & Mauritz AB had a gross margin of 50.67% for the quarter that ended in Feb. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
H & M Hennes & Mauritz AB Gross Margin % Related Terms
H & M Hennes & Mauritz AB Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CHIX:HMBS vs RL, LEVI, VFC: Gross Margin % Comparison
For the Apparel Manufacturing subindustry, H & M Hennes & Mauritz AB's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
H & M Hennes & Mauritz AB Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's Gross Margin % distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
H & M Hennes & Mauritz AB (CHIX:HMBS) has a Gross Margin % of 50.67% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on H & M Hennes & Mauritz AB and its competitors. This is near median its historical median of 52.74. Over the past decade, H & M Hennes & Mauritz AB's Gross Margin % has ranged from 50.02 to 55.22. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #194 out of 1026 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 18.9%.
Is H & M Hennes & Mauritz AB's Gross Margin % too high?
H & M Hennes & Mauritz AB's current Gross Margin % of 50.67% is near median its 10-year median of 52.74. Over the past 10 years, this metric has ranged from a low of 50.02 to a high of 55.22. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.51. H & M Hennes & Mauritz AB's value of 50.67% is 77.7% above this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #194 out of 1026 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, H & M Hennes & Mauritz AB has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H & M Hennes & Mauritz AB's Gross Margin % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #194 out of 1026 companies for Gross Margin %. This places H & M Hennes & Mauritz AB in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 28.51. H & M Hennes & Mauritz AB's value of 50.67% is 77.7% above this benchmark. Historically, H & M Hennes & Mauritz AB's own Gross Margin % has ranged from 50.02 to 55.22 over the past decade. While the company's 10-year median is 52.74 vs. the industry median of 28.51, H & M Hennes & Mauritz AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.51, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H & M Hennes & Mauritz AB's current Gross Margin % of 50.67% is 77.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on H & M Hennes & Mauritz AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current Gross Margin % is 50.67%, which is near median its own 10-year median of 52.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H & M Hennes & Mauritz AB stock overvalued right now?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB (CHIX:HMBS) is currently considered Fairly Valued. The stock's GF Value™ is kr155.07, compared to a current price of kr166.08 — trading 7.1% above its estimated fair value. The current Gross Margin % is 50.67%, which is near median its 10-year median of 52.74 and 77.7% above the Manufacturing - Apparel & Accessories industry median of 28.51. H & M Hennes & Mauritz AB's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For H & M Hennes & Mauritz AB (CHIX:HMBS), the current Gross Margin % is 50.67% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H & M Hennes & Mauritz AB (CHIX:HMBS) Overvalued in 2026?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB stock appears to be overvalued.
The current stock price of kr166.08 is trading 7.1% above its estimated GF Value™ of kr155.07.
GuruFocus considers H & M Hennes & Mauritz AB to be Fairly Valued.
Key valuation signals for CHIX:HMBS:
Gross Margin %: 50.67% (near median its 10-year median of 52.74)
GF Value™: kr155.07 vs. price of kr166.08 (7.1% above fair value)
Industry Position: 77.7% above the Manufacturing - Apparel & Accessories median (#194 of 1026)
No single metric tells the full story. See the CHIX:HMBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The H&M Group is a global multi-brand fashion conglomerate founded in 1947. Its flagship brand, H&M, generates the majority of the group's revenue, while ARKET, COS, and the secondhand platform Sellpy represent key sources of future growth. Geographically, 34% of group revenues are generated in Western Europe, followed by North and South America at 23%, and both Southern Europe and Asia, Oceania, and Africa at 13% each. The Nordic region accounts for approximately 9% of total sales.The company operates 4,101 stores (3,660 attributable to H&M brand) across 81 markets worldwide, the majority of which are leased. Online sales contributed slightly above 30% of total group revenue in financial 2025 .
74GF Score
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