H&M reports Q2 profit miss as tighter inventory hit sales
- On Thursday, Swedish fashion retailer H&M reported smaller-than-expected March-May profit as tighter inventory management limited its ability to fully meet consumer demand.
- Inventory fell 10 percent to 3.15 billion euros as the retailer pursued aggressive stock reduction to streamline operations and boost full-price sales margins.
- Operating profit remained unchanged at 5.91 billion crowns, missing the 6.38 billion forecast, though gross margins widened to 56.6 percent and profit rose 11 percent excluding restructuring costs.
- The retailer shuttered 17 flagship brand stores in the second quarter, bringing first-half closures to 61 and leaving 4,038 units worldwide as part of its network streamlining.
- Expanding beyond its core brand, H&M plans seven store openings in Brazil this year and launches in Malta and Azerbaijan, while entering Paraguay and Argentina through franchise partnerships.
16 Articles
16 Articles
The Independent
The Independent (US)H&M sees efforts to control stock weigh on sales
Sales in Western Europe – where H&M makes the most money – were down by 5% year-on-year.
H&M reports steady profit despite lower sales
H&M said its online sales continued to grow and now account for just over 30% of sales. (AFP pic) STOCKHOLM: Swedish fast-fashion giant H&M reported Thursday a drop in sales for its second financial quarter, with operating profit holding steady but below the level analysts were expecting. Net sales fell to 54.8 billion kronor (US$5.6 billion) in the three months from March to end-May, from 56.7 billion kronor in the period last year. Operating p…
Clothing giant H&M's results were disappointing - the stock is falling. CEO Daniel Ervér is unhappy that sales are not picking up.
The Swedish H&M chain has closed the first half of the year with a net profit of 410 million euros, 3% more than in the same period of 2025, although sales fell by 7% in nominal terms. Improved profitability, driven by cost control and a higher operating margin, could allow the company to play with prices in the face of the sales season. The group’s revenues reached 9,200 million euros between December 2025 and May 2026, compared to approximatel…
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