H&M's top line continues to raise questions, and UBS remains cautious on growth and the gross margin. The bank says the company's restructuring hints at efficiencies to come and UBS recognizes a lot of improvements in the H&M business model, which have resulted in a better gross margin, stronger cost control and better inventory control. Revenue remains a challenge and second-quarter update continued this trend, with soft local currency sales and flat sales at the start of the third quarter. However, gross margin continues to benefit from supply-chain efficiencies and tight operating expenditure control, UBS adds. The bank trims its price target to 168 Swedish kronor from 169 kronor and keeps neutral rating on the stock. Shares fall 0.6% to 165.65 kronor. (dominic.chopping@wsj.com)