Press release
H & M Hennes & Mauritz AB Three-month report 2026
First quarter (1 December 2025 — 28 February 2026)
- Net sales amounted to SEK 49,607 m (55,333). Sales in local currencies decreased by 1 percent, with around 4 percent fewer stores at the end of the quarter compared with the same point in time last year. Net sales in SEK were negatively affected by a currency translation effect of just over 9 percentage points due to the strengthened Swedish krona.
- Gross profit amounted to SEK 25,138 m (27,169), which corresponds to a gross margin of 50.7 percent (49.1). The costs of markdowns decreased somewhat compared with the previous year.
- Selling and administrative expenses decreased by 1 percent in local currencies. Converted into SEK these expenses decreased by 9 percent to SEK 23,625 m (25,938).
- Operating profit increased by 26 percent to SEK 1,512 m (1,203), corresponding to an operating margin of 3.0 percent (2.2).
- The result after tax increased to SEK 704 m (579), corresponding to SEK 0.45 (0.37) per share.
- Cash flow from operating activities after changes in working capital amounted to SEK 4,025 m (4,201). Operating working capital decreased during the quarter with SEK 2,088 m (1,953), mainly as a result of improved inventory productivity.
- Stock-in-trade decreased by 16 percent to SEK 34,608 m (41,008) and the composition of the stock-in-trade is good. Currency adjusted the stock-in-trade decreased by 5 percent compared with the previous year. The stock-in-trade in SEK represented 15.6 percent (17.4) of rolling 12 months sales.
- The H&M group’s sales in the month of March 2026 are expected to increase by 1 percent in local currencies compared with the same month the previous year.
- Today the H&M group publishes its annual and sustainability report 2025. Among other things, the report shows that 32 percent of the materials used in commercial products in 2025 were recycled materials, and that the share of recycled or sustainably produced materials was 91 percent. You can read more about this and our sustainability work at hmgroup.com.
- The annual general meeting will be held on 5 May 2026 to resolve, among other things, on the board’s proposed dividend of SEK 7.10 (6.80) per share, to be paid in two instalments, and on a general authorisation allowing the board to buy back the group’s own B shares in the period up to the 2027 annual general meeting.
“Good cost control and an improved gross margin contributed to strengthened profitability in a quarter characterised by cautious consumption and large currency translation effects,” says Daniel Ervér, CEO.
Comments by Daniel Ervér, CEO
Good cost control and improved gross margin contributed to strengthened profitability in a quarter marked by cautious consumption and large currency translation effects.
Sales in local currencies decreased by 1 percent, while the store count was around 4 percent lower than in the same quarter last year. Revenue in SEK were negatively affected by a currency translation effect of just over 9 percentage points due to the strengthened Swedish krona. The quarter began in December with weaker demand following strong Black Friday trading in November. Towards the end of the quarter our well-received spring collections contributed to a positive sales trend, which also continued into March.
Through continued good cost control, greater efficiency in our product purchasing and external factors that positively affected purchasing costs, we strengthened both the gross margin and the operating margin compared with the same quarter last year. The results of this can also be seen over the past 12 months, as the operating margin has improved by 1.4 percentage points to 8.4 percent.
We are continuing to develop the customer offering with a focus on product, experience and brand to strengthen the foundation for profitable and sustainable growth. Inventory efficiency was improved further during the quarter, and the stock-in-trade situation is good. Shorter decision paths mean we are able to act faster; combined with deeper collaboration with our suppliers, this increases our opportunities to purchase a higher share of the assortment in season and thus create an even more relevant offering. We are also continuing to implement improvements in our physical stores within areas such as tech, layout and presentation.
In a still challenging macroeconomic environment marked by increased geopolitical uncertainty, flexibility is more important than ever. With the customer in focus, short decision paths and good cost control, we can adapt to a rapidly changing environment and continue to offer our customers relevant fashion with the best possible value for money.
Communication in conjunction with the three-month report
The three-month report, i.e., 1 December 2025 – 28 February 2026, will be published at 08:00 CET on 26 March 2026, followed by a combined webcast and conference call at 09:00 CET for the financial market and media. The combined webcast and conference call will be held in English, hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.
To listen and see the presentation please register via this link: https://edge.media-server.com/mmc/p/og32667j
To ask questions during the Q&A session please register and dial-in via this link: https://register-conf.media-server.com/register/BIf969b143fda741568b60205a80812162
To book interviews for media in conjunction with the three-month report on 26 March 2026, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.
Contact
Joseph Ahlberg, Head of IR +46 73 465 93 92
Daniel Ervér, CEO +46 8 796 55 00 (switchboard)
Adam Karlsson, CFO +46 8 796 55 00 (switchboard)
H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46 8 796 55 00, e-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220
For more information about the H&M group visit hmgroup.com.
Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CET) on 26 March 2026. This interim report and other information about the H&M group are available at hmgroup.com.
H & M HENNES & MAURITZ AB (PUBL) was founded in Sweden in 1947 and is listed on Nasdaq Stockholm. H&M’s business idea is to offer fashion and quality at the best price in a sustainable way. The group’s brands are H&M (including H&M HOME, H&M Move and H&M Beauty), COS, Weekday (including Cheap Monday and Monki), & Other Stories, ARKET, Singular Society and Sellpy. The group also includes several ventures. For further information, visit hmgroup.com.