STOCKS NEWS EUROPE-H&M drops on surprise fall in Oct sales

Hennes & Mauritz (HMb.ST) shares drop 4 percent to 418.4 Swedish crowns, the biggest faller on Europe's benchmark index .FTEU3 after the world's third-biggest retailer misses October sales forecasts.

"While a 3 percent like-for-like decline in October may not appear a terribly poor figure, when set in the context of very strong German industry data, its own undemanding comparative and the very weak figures achieved in August and September under the influence of warm weather, it is fair to say that this is a big disappointment," Credit Suisse analysts say.

BofA-Merrill Lynch analysts think the need to clear excess stock could pressure profit margins. But they add this should be offset by less industry-wide promotional activity and by a boost from currency hedges and so do not expect big changes to consensus profit estimates. For more double click on [ID:nLG322453]

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