H&M profit rises 3% in the first fiscal semester, but sales back 6.8%

Nthe first six months of its fiscal year, H&M recorded a gross margin of 53.8%, against 52.3% of the same period of the previous year, while the operational result reached 7.425 million kroner (670 million euro), an increase of 4.3%, with an operating margin of 7.1%, against 6.4% in the same semester.

The Scandinavian company’s net sales amounted to SEK 104,435 million (EUR 9,420 million), 6.8% below the revenues recorded during the same period of the previous year, although the fall in local currencies was limited to a percentage point, including a 1% drop in the Nordic countries, to Kronor 9,649 million (EUR 8,70 million), and to 6% in Western Europe, with NOK 35,532 million (EUR 3,205 million).

In Eastern Europe, sales of the Swedish fashion chain totalled SEK 9,408 million (EUR 849 million), a 4% reduction, while in South Europe they fell by 3% to Kronor 14,321 million (EUR 1,292 million).

On the US market, H&M's revenues fell by 10% in the six months, to SEK 22,702 million (EUR 2,048 million), and decreased by 12% in Asia, Oceania and Africa to EUR 12,823 million (EUR 1,157 million).

Considering only the second quarter of its fiscal year, the textile chain recorded a net attributable profit of SEK 3,986 million (EUR 360 million), an increase of 0.2% compared to the previous year, while net sales totalled SEK 54 828 million (EUR 4,946 million), a decrease of 3,3%.

The result of the second fiscal quarter included an extraordinary adverse impact of SEK 679 million (EUR 61 million) due to restructuring costs, resulting in an operational profit of SEK 5,913 million (EUR 533 million), in line with the previous year, corresponding to an operating margin of 10.8% plus four tenths.

The company foresees that the sales of the H&M group in local currency during the month of June “be similar” to those of the same month of the previous year, while waiting to continue its expansion in Latin America by opening the first store in Paraguay during the second half of 2026 and Argentina in 2027.

“ Quarter sales were slightly below forecast, while profitability and stocks developed favorably,” commented H&M Executive President Daniel Ervér, stressing that the international context continues to be characterised by uncertainty and accelerated change.

According to Daniel Ervér, in the second half of the year the company will start updating the digital infrastructure that will “support its development”, providing better support for decision making, faster processes and greater precision in planning our set and stocks.