H&M’s net sales in the fourth quarter, ended Nov. 30, amounted to SEK 62.193 billion (€5.42bn), down from SEK 62.650 billion a year earlier. In local currencies, net sales increased by 3 percent.

RBC Capital Markets’ analyst Richard Chamberlain pointed out that the fourth-quarter sales growth was below the expected 4 percent, but noted that the fact that Black Friday occurred later than in the previous year underpinned margins as some promotional sales were pushed into the following quarter.

Highlights H&M year-end report 2024

  • The gross margin of the Swedish fashion retailer widened to 54.6 percent from 53.7 percent the previous year.
  • Selling and administrative expenses amounted to SEK 29.303 billion (€2.55bn), up by 2 percent in local currencies.
  • The operating margin increased to 7.4 percent from 6.9 percent.
  • The result after tax nearly doubled to SEK 3.081 billion (€268m) from SEK 1.569 billion, corresponding to SEK 1.92 (€0.17) per share, up from SEK 0.97.
  • Inventories amounted to SEK 40 348 m (37 358). Extended transportation times linked to the situation in the Red Sea and the fact that Black Friday fell later than last year had a significant impact on inventories. The composition of inventories is considered to be good.

Store closures and changes continue in 2025

The store portfolio is the area where upgrades continue at a high pace and where the largest investments are made in 2025. This is through openings, remodeling, layout improvements and technology installations.

At the end of November 2024 there were 4,253, in 2023 the number was 4,369 in the H&M group with 116 stores, which is around 3 percent. In the financial year 2024, 88 (101) new stores were opened and 204 (197) stores were closed. A total of 258 (282) of the group’s stores are operated by franchise partners.

In 2025, the clothing giant plans to close 190 stores, of which 48 are Monki stores. At the same time, 80 new stores will open where H&M sees growth potential. For example, the first H&M store in Brazil will open in São Paulo in late 2025.

According to the Spanish online magazine Sur in Eng, H&M has announced plans to shut 28 stores in Spain and make almost 600 staff redundant. The company said the move is inevitable due to organizational, productive and economic reasons within its shops in Spain. More redundancies will also happen within H&M’s Barcelona offices. The negotiation process will start in September, the magazine said.

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