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The growth perspective remains above average and sustainable. New revenue and business triggers are: additional store openings, accessing new markets, online retail (e-commerce), and sports clothing. The company has so far a small exposure to the e-commerce and online retail business and any development could propel the company into an upbeat position.
H&M still enjoys some pricing power in a difficult market segment; this trend could be durable in the context of low cotton price and strong competitors with good to excellent products from Asia. In term of valuation, H&M is still trading at high P/E ratio (22.6x '16) but with a discount compared to its main competitor Inditex.
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