Ramsbury's Strategic Move into H&M Shares: Assessing Value and Long-Term Growth in the Post-Pandemic Fashion Sector

The Persson family, through their holding company Ramsbury Invest, has embarked on an aggressive share-buying campaign to consolidate control of H&M, acquiring 42.75 million shares in the first half of 2025 alone, according to a US News report. This strategic move has elevated their ownership to 64.97% of the company's capital and 83.16% of voting rights, according to an Inderes preview, fueling speculation that the fast-fashion giant could be taken private by 2030 (the US News report notes). As the global fashion sector navigates post-pandemic challenges and sustainability-driven consumer shifts, Ramsbury's investment strategy warrants a nuanced analysis of H&M's valuation, competitive positioning, and long-term growth potential.

Post-Pandemic Fashion Trends: Sustainability and Digital Transformation

The post-pandemic fashion industry is defined by two pivotal forces: sustainability and digital innovation. H&M has positioned itself at the forefront of these trends. By 2024, the company achieved 89% use of recycled or sustainably sourced materials, with 29.5% of inputs being recycled-a near-achievement of its 30% 2025 target (reported by the US News report). Its Scope 1 and 2 emissions dropped 41% from 2019 levels, while 96% of its electricity now comes from renewable sources, according to an H&M sustainability profile. These efforts align with a broader industry shift, as 82% of consumers now prioritize brands with transparent sustainability practices, according to a St Andrews Economist analysis.

Digitally, H&M has leveraged blockchain for textile traceability and expanded its circular economy initiatives through platforms like Sellpy, which facilitate secondhand resale (the US News report highlights these efforts). The global fashion market, valued at $1.7 trillion in 2025, is projected to grow at a 4–7.6% CAGR through 2030, driven by circular models and AI-driven personalization, according to an Ithy analysis. However, rising shipping costs and supply chain fragility remain headwinds, which the Ithy analysis also notes.

H&M's Financial Performance and Market Position

H&M's Q1 2025 results revealed a 53% year-over-year decline in net profit to 579 million SEK, attributed to markdowns, currency losses, and a stronger Swedish krona, as detailed in the H&M sustainability profile. Despite this, the company's gross margin stabilized at 49.1%, and its operating margin improved in Q2 2025 due to cost controls and trend-aligned collections, according to a Fast Company report. Analysts project 12.1% annual earnings growth through 2026, with H&M's stock currently trading at a 60.8% discount to its DCF-derived intrinsic value of SEK 376.69 per share, the Inderes preview estimates.

Competitively, H&M holds a 1.40% market share in the global apparel industry, trailing Nike and Adidas, as the Ithy analysis shows. While it faces pressure from Zara and Shein, its sustainability credentials and brand repositioning-such as Gen Z-focused collaborations-offer differentiation, a point highlighted in the H&M sustainability profile. The company's expansion into Brazil, El Salvador, and Venezuela in 2025 further underscores its growth ambitions, as reported in the Fast Company report.

Valuation and Long-Term Prospects

Ramsbury's share purchases suggest a long-term value-creation strategy. By reinvesting dividends and acquiring shares at an average price of SEK 142.23 per share in August 2025, the Inderes preview notes that the family is effectively leveraging undervaluation. H&M's forward PE ratio of 21.44 and PEG ratio of 2.72 indicate mixed signals: while earnings growth is robust, the valuation may not fully reflect its sustainability-driven differentiation, according to the Inderes preview.

The potential privatization by 2030, though unconfirmed, could streamline decision-making and accelerate H&M's transition to a circular business model. Analysts note that taking the company private would allow the Persson family to prioritize long-term sustainability goals over short-term shareholder pressures, as the US News report suggests. However, risks persist, including margin pressures from rising fuel costs and competition from lower-cost rivals, which the Ithy analysis also highlights.

Conclusion

Ramsbury's strategic accumulation of H&M shares reflects a calculated bet on the company's ability to navigate post-pandemic challenges through sustainability and digital innovation. While H&M's financials show resilience amid a volatile market, its valuation appears undervalued relative to its ESG progress and growth pipeline. For investors, the key question is whether the Persson family's control will catalyze a transformation that aligns with the evolving demands of a sustainability-conscious consumer base. As the fashion sector pivots toward circularity and tech-driven efficiency, H&M's trajectory under Ramsbury's stewardship could serve as a bellwether for the industry's next phase.