H&M keeps its finger on the pulse and earns 4.6% more at fiscal year-end

The Swedish textile chain Hennes & Mauritz (H&M) obtained an attributable net profit of 12.158 billion kronor (1.15 billion euros) at the end of its fiscal year, which ended last November, representing an increase of 4.6% over the result recorded in the previous year, the multinational reported Thursday.

Net sales of the Scandinavian firm amounted to 228,285 million kronor (21,588 million euros) for the year as a whole, 2.6% below the previous year’s revenue, although in local currencies H&M’s annual turnover increased by 2%.

The Swedish retailer’s turnover in Asia and Oceania totaled 26,493 million kronor (2,505 million euros), down 7.4% from the previous year; while in Europe and Africa it reached 152.794 million crowns (14,449 million euros), 0.8% less; and in America decreased by 5.4% to 48,998 million crowns (4,633 million euros).

In the last quarter of its fiscal year, H&M had an attributable net profit of 4,362 million Swedish kronor (413 million euros), 46% more than a year earlier, while net sales of the textile chain totaled 59,221 million kronor (5.6 billion euros), down 4.8%.

H&M raised its net profit in 2025 to 1.15 billion euros.

At year-end, the chain had a total of 4,101 stores worldwide, a net decrease of 152 stores for the year, including a net reduction of 17 stores in the fourth quarter.

In this regard, the Swedish chain plans to open around 80 new stores in 2026, while around 160 stores are expected to be closed. While H&M plans openings in all regions, most of them will be in growth markets.

On the other hand, the company expects its sales in the period from December 1, 2025 to January 31, 2026 to decrease by 2% in local currency compared to the same period of the previous year, although it has stressed that its sales in the period from December 1, 2025 to January 31, 2026 will decrease by 2% in local currency compared to the same period of the previous year.However, it stressed that this development “should be seen in light of the strong sales during the Black Friday week at the end of November,“ which led to subdued demand in several markets in December. In addition, H&M has warned of the negative calendar effect associated with the Chinese New Year, which this year falls in February.

The company also expects its capital expenditure in comparable currency to amount to between SEK 9 billion and SEK 10.billion Swedish kronor (€851 million and €946 million) by 2026, noting that investments will mainly be allocated to the store portfolio and technology infrastructure, adding that, after a period of high levels of investment in the supply chain, new logistics solutions will be gradually implemented in Europe in 2026.

“In 2026, we continue to consolidate the foundations for continued profitable and sustainable growth,“ said Daniel Ervér, CEO of H&M, for whom the start of the new year “has been marked by continued geopolitical and economic uncertainty,“ underlining the importance of an efficient organization with agile decision-making processes and a high degree of flexibility and continuous cost control.

Furthermore, as H&M continues to optimize its store portfolio, he anticipates that the impact on sales from the process “will reverse and be slightly positive”.