Swedish fashion retailer H&M reported Q4 net sales of SEK59.2 billion (€5.6bn) to Nov. 30, 2025, a decrease from SEK62.2 billion (€5.9bn) the previous year. Net sales in SEK were adversely impacted by a currency translation effect of around 7 percentage points due to the strengthened Swedish krona. In local currencies, net sales in the fourth quarter increased by 2 percent, despite approximately 4 percent fewer stores at the end of the quarter compared with the same point in time last year.
Profitability jumps on improved offering and cost discipline
Operating profit in the quarter, which includes Black Friday, increased by 38 percent to SEK6.4 billion (€601.5m), with the operating margin widening to 10.7 percent from 7.4 percent a year earlier. The profit increase in the fourth quarter was largely driven by an improved customer offering, good cost control and improved inventory productivity, explained the retailer.
Store optimisation to turn positive in 2026
The optimization of the store portfolio had a negative impact on sales in 2025 due to store closures and rebuilds but the company expects the sales effect from store optimization to be “slightly positive” in 2026. As of Nov. 30, 2025, the H&M group had 4,101 stores, i.e. the total number of stores had decreased by 152 compared with the same point in time the previous year, marking a reduction of around 4 percent.
What’s next
The annual and sustainability report and the corporate governance report are scheduled for publication on March 26, 2026 on hmgroup.com. The 2026 annual general meeting will be held on May 5, 2026 at the Karolinska Institutet in Solna, Sweden.
Editor’s note: H&M’s wellness push
The margin improvement comes as H&M expands its sporting goods footprint. In early January 2026, H&M Move launched its Wellness Edition featuring SculptMove, a performance fabric engineered for shaping and support across Pilates, yoga and recovery activities. The collection, designed with 1990s-minimalist silhouettes in sculpting fabrics, signals H&M’s intent to compete more aggressively in the athleisure and performance apparel categories that now drive growth for both fashion retailers and traditional sporting goods brands.
