LONDON – Sales growth at H&M Group remained steady in the fiscal fourth quarter, while profits were up as CEO Daniel Ervér tightens operations and sharpens the fast-fashion giant’s competitive edge.
H&M said Thursday that in the three months to Nov. 30, 2025, sales in local currencies increased by 2 percent, with 4 percent fewer stores at the end of the quarter compared with the same period last year. Net sales were down 7 percent to 59.22 billion Swedish kronor, or 5.62 billion euros, due to the strengthened krona.
Operating profit increased by 38 percent to 6.36 billion Swedish kronor, or 600 million euros, corresponding to an operating margin of 10.7 percent. The company said a better fashion offering, an improved gross margin and “good cost control” contributed to the increase in profit in the quarter.
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Post-tax profit increased to 4.33 billion Swedish kronor, or 41 million euros, in the three-month period.
H&M said that in the quarter, selling and administrative expenses decreased by 3 percent in local currencies. Expenses were down by 9 percent to 26.70 billion kronor, or 2.53 billion euros.
The stock-in-trade decreased by 12 percent in the period and H&M described the composition of the stock-in-trade as “good.”
“We continue to take important steps towards all our long-term targets in a challenging environment,” Ervér said.
For the full fiscal year ended Nov. 30, net sales in local currencies increased 2 percent. The group’s net sales amounted to 228.29 billion kronor, or 21.66 billion euros.
In the full year, operating profit increased to 18.4 billion kronor, corresponding to an operating margin of 8.1 percent. After-tax profit increased to 12.09 billion kronor, or 1.15 billion euros.
H&M said that in the first fiscal quarter of the current year, which ends Jan. 31, group sales are expected to decrease by 2 percent in local currencies compared with the same period the previous year.
The company said that sales development should be seen in the light of strong sales during the Black Friday week at the end of November, “which led to subdued demand in a number of markets in December.”
In addition, there is a negative calendar effect associated with the Chinese New Year, which this year falls in February, the company added.
