Swedish fast-fashion retailer H&M, which has closed 50 stores over the last three months, is testing new tactics to improve profit margins. With the entry into Brazil’s huge market, the company seeks new sales opportunities.
Retail giant H&M, whose stores stock a significant proportion of sportswear, has entered the Brazilian market for the first time. The launch took place on Aug. 23 and includes both a brick-and-mortar store in São Paulo and an e-commerce shop for the huge market.
H&M is not a total newcomer in Brazil, as the company is already producing some items in the country, including footwear and beachwear. The first H&M Brazil store focuses on women’s fashion, but more is to come. The second, set to open soon, H&M said, will offer a wider assortment of products, including women’s, men’s and children’s clothing, accessories and shoes.
”Launching our first store and online on the same day is a historic moment for H&M, and I’m so excited we have finally arrived,” said Daniel Erver, CEO, H&M Group. ”Bringing H&M to Brazil is more than a launch – it’s about building a lasting connection with a country that inspires us. We’re here to celebrate creativity and self-expression, offering fashion and quality at the best price in a sustainable way to our customers in Brazil.”
With this launch in Brazil, H&M has stores in 79 markets and online sales in 61 markets.
This is not the last new strategy launch from H&M, which needs to rethink its business. Latest report from the company in June 2025 showed that H&M´s earnings were down 28 percent from last year. Looking back, the retailer is optimizing its commercial park, having closed approximately 50 stores over the previous three months, which, of course, is affecting its turnover.
H&M has reduced its profit to 4.5 billion Swedish kronor ($0.42bn), and in the 2024 fiscal year, H&M Group’s global net sales totaled approximately SEK 234 billion (€21.0bn).
