27 March, 2024 – H&M shares surged over 15% on Wednesday after the company reported better-than-expected first-quarter results. The reason for this impressive increase is a significant profit increase and a raised operating margin target. H&M’s operating profit was announced at 2.08 billion Swedish Krona (~$196 million), higher than analyst predictions of 1.43 billion Swedish Krona (~$134.6 million). Operating margin rose to 3.9% from 1.3% showing they are on their way to their 10% operating margin target. These results came despite the decreasing sales from 54.9 billion kronor to 53.7 billion kronor year on year.
According to J.P. Morgan’s Natasha Kaneva, despite a dip in oil prices on Wednesday, the reduction in Russia’s output by 471,000 barrels per day in the second quarter could be sending Brent crude toward the $100 . Brent oil prices could reach $90 in April, mid-$90s in May, and close to $100 by September. However, various solutions such as releasing more crude from the U.S. Strategic Petroleum Reserve or demand destruction could reduce the impact of higher prices. While J.P. Morgan’s long-held forecasts remain at $90 a barrel by May and $85 in the second half of the year, they acknowledge the possibility of prices reaching $100 on their way to these projections.
On Tuesday, a container ship, the Dali,crashed into Baltimore bridge. Leading to plunge most of the bridge’s span beneath the water. The situation is causing significant disruptions in the supply chain and may have a substantial impact on commerce. Primary industries getting affected from the situation are construction and contractors supply chain, auto/light truck,agriculture tractor imports/exports as well as major wood panel importers. The main reason for this stress is ocean carriers declaring force majeure, passing responsibility to logistic companies and shippers to pick up cargo at alternate ports.This is leading to concerns about container late fees and challenges in planning for container pick-ups due to delayed vessel transit updates.
Author: Kaan Pinar