Following today’s release of H&M’s figures for the three months ending 28 February 2026; Sharon Iles, senior apparel analyst at GlobalData, comments: “H&M delivered a challenging performance in Q1 2025/26, with sales down 10.3% to SEK 49.6bn, as a stronger SEK and the closure of 51 stores weighed on reported revenue. The store closures form part of a deliberate portfolio optimization strategy, which designed to strengthen the group’s long-term positioning. Despite the top-line pressure, operating profit rose 25.7% to SEK 1.5bn, reflecting a healthier profitability profile underpinned by a stronger gross margin and disciplined cost control. The quarterly operating margin of 3.0% marked an improvement of 0.8ppts year-on-year, and on a rolling 12-month basis the margin reached 8.4%, up 1.4ppts, pointing to a sustained profitability recovery.
“Southern Europe was the standout regional performer in Q1 2025/26, with sales up 3% in local currencies, supported by minimal store closure. In the Nordics, sales were flat in local currencies, reflecting similarly limited store closures as well as the steadier, more mature dynamics of the group’s home market. At the other end of the spectrum, Asia, Oceania & Africa and North & South America were the weakest regions, each down 3% in local currencies, as higher store closure activity combined with demand softness and weaker consumer confidence amid broader macroeconomic uncertainty.
“Portfolio brands reported net sales down 1% in local currencies in Q1 2026, driven in part by lower Monki sales following store closures, while online operations continued. Excluding Monki, sales grew 1% in local currencies, pointing to a more positive underlying trend across the remaining brands. ARKET opened its first store in Greece and is set to enter Lithuania later in 2026, extending its physical footprint into new European markets. In terms of wholesale, both ARKET and & Other Stories launched on Zalando, across several European markets. The move reflects the growing resonance these brands hold with European consumers and their ability to attract wholesale partners seeking differentiated, design-led propositions.”
