Core Viewpoint - The Perssons family, the founders of H&M, is reportedly moving towards privatizing the brand, having increased their stake to nearly 64% through significant investments since 2016, which raises concerns for minority shareholders [1][4]. Group 1: Shareholder Dynamics - The Perssons currently hold 70% of H&M's capital and 85% of voting rights, making it nearly impossible for minority shareholders to oppose any privatization efforts [1]. - The Swedish Shareholders' Association has expressed skepticism about H&M's management transparency and the need for clearer communication regarding privatization plans [4]. Group 2: Financial Performance - H&M's Q1 2025 financial results showed a 2% year-on-year sales increase to 55.33 billion SEK (approximately 40.2 billion RMB), slightly below analyst expectations [4][5]. - Gross profit for the quarter was 27.17 billion SEK (approximately 37.4 billion RMB), with an operating profit of 1.20 billion SEK (approximately 870 million RMB), significantly lower than the market forecast of 1.9 billion SEK [5][6]. - The operating margin fell to 2.2%, down from 3.9% in the previous year, indicating a decline in profitability [5][6]. Group 3: Market Strategy and Adjustments - H&M has been adjusting its market strategy in China, including the renovation of flagship stores and the reopening of its first store in Shanghai with nearly double the previous size [8]. - The company has also closed some locations, such as the & Other Stories store in Beijing, which focuses on more design-oriented and sustainable products [10]. - H&M's mid-range brand COS is reportedly restarting its expansion in the Chinese market after a two-year hiatus [12]. Group 4: Stock Performance - H&M's stock price has been on a downward trend, falling from 148.75 SEK per share (approximately 111.08 RMB) at the beginning of the year to 137.40 SEK (approximately 102.60 RMB) by June 6, with a low of 122.90 SEK (approximately 91.77 RMB) during this period [6].

Group 1 - COS, a brand under H&M Group, is restarting its expansion plan in China, opening new stores in major cities like Beijing and Shenzhen after nearly two years of inactivity [1][4] - As of now, COS has a total of 40 stores in China, with a focus on first-tier and new first-tier cities, maintaining a similar strategy to its previous expansion efforts [1][3] - The brand's recent store openings are part of a broader trend where fast fashion brands are facing challenges in the Chinese market, leading to a pause or reduction in expansion for many mid-range brands [3][4] Group 2 - COS's store selection criteria resemble those of luxury brands, primarily opening in high-end projects managed by top real estate developers [6] - The brand has gained attention as a "premium alternative" amid the global luxury market slowdown, with a notable rise in its ranking on fashion search engines [6][7] - COS has launched a high-end line, COS Atelier, to differentiate itself further, although the effectiveness of this strategy remains uncertain [7][8]