Following today’s release of H&M’s figures for the twelve months ending 30 November 2025; Sharon Iles, senior apparel analyst at GlobalData, a leading data and analytics company, offers her view: “The H&M Group reported a 2.6% decline in group sales to SEK228.3bn in FY2024/25, reflecting adverse foreign exchange translation from a stronger Swedish krona. In local currencies, sales increased 2% despite the group operating with 4% fewer stores by the end of Q4, strong evidence of improving profitability. The results suggest the group’s optimisation strategy is gaining traction, with initiatives including closing underperforming stores whilst opening flagship locations in high-potential markets. While these results are encouraging, the group will need to continue strengthening its fashion credentials and product appeal if it is to recapture market share lost in recent years. Operating profit rose to SEK18.4bn, up 6.3% year on year, driven by stronger gross margins, lower markdowns and disciplined cost control. This corresponded to an operating margin of 8.1%, an improvement of 0.7ppts on the same period last year.
“Southern Europe and Western Europe were the best performing regions in local currency, posting 5% and 1% growth respectively, as European consumers resonated with the brands’ fashion credentials. Asia, Oceania and Africa, alongside the Nordics, were the group’s weakest regions, both declining 1% in local currency. Asia, Oceania and Africa’s underperformance was due to prolonged muted demand, intensifying competition from local players and ongoing challenges in establishing brand relevance in China. The weakness in the Nordics reflected a mature, saturated market with limited growth options. Eastern Europe and North and South America both delivered 1% growth, suggesting demand was stable in these territories.
“Net sales for H&M’s portfolio brands increased 1% in local currencies for FY2024/25, with 4% growth excluding Monki, as strong performance from COS and ARKET drove momentum. Monki, by contrast, weighed on overall portfolio growth as it was fully integrated into Weekday, with all standalone Monki stores closed by the end of Q4. The group sales rose 2% in local currencies whilst portfolio brands grew just 1%, indicating the H&M brand outperformed the wider portfolio. This suggests the core brand is regaining momentum and moving in the right direction, which should underpin sustainable margin expansion as o
