Following today’s release of H&M’s figures for the three months ending 31 August 2026; Sharon Iles, senior apparel analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “H&M’s net sales edged up 0.3% to SEK57.2bn in Q3 FY2025/26, with around 2% fewer stores than a year earlier as the group continues to optimise its store portfolio around profitable locations. Nine-month sales fell 4.6% to SEK161.6bn, largely reflecting the stronger Swedish krona, as sales were flat in local currencies. Well-received summer collections lifted trading towards the end of the quarter, but sales were affected by continued disruption in the global supply chain and in H&M’s European logistics network, which is being consolidated. While performance has improved, H&M still struggles to capture consumer interest and continues to underperform the wider market. Looking ahead, H&M expects September sales to rise slightly, while markdowns are set to increase somewhat in Q4 as the Black Friday promotional period gets longer. Despite broadly flat sales, operating profit jumped 23% to SEK6.0bn, helped by a one-off benefit relating to tariffs and import costs. However, share price fell c.3.3%, suggesting investors were not satisfied with the results.
“Regionally, the Nordics were the standout, with sales up 6% in local currencies despite 14 fewer stores year on year, indicating to stronger productivity in H&M’s home region. Asia, Oceania and Africa followed, increasing 4% in local currencies despite experiencing the most closures, with 81 fewer stores year on year, demonstrating the exit from underperforming locations is paying off. Eastern and Southern Europe each grew 1%, as did the Americas. Latin America continued to expand, as H&M opened its first two stores in Paraguay in Q3 and will enter Argentina via franchise in 2027. Western Europe, the group’s largest region, was the weakest, decreasing 1% in local currencies, hit by the European logistics disruption and consumers squeezed by high living costs.
“Portfolio brands grew sales 3% in local currencies, or 4% excluding Monki, outperforming the group’s total growth, which indicates the core H&M brand underperformed due to subdued demand. ARKET is expected to open its first store in Lithuania in Q4 and & Other Stories is entering Mexico this year. This showcases H&M group sees scope to grow at the more premium end of the market. For the H&M brand, some refreshing collaborations, including London Fashion Week show with Nick Knight and SHOWstudio in September 2026, respectively ELIE SAAB in October 2026, should help strengthen its fashion credentials.”
