H&M flags subdued winter sales
By Abigail Townsend
Date: Thursday 29 Jan 2026
(Sharecast News) - Hennes & Mauritz posted above-forecast quarterly profits on Thursday, boosted by improved ranges and lower costs, but warned of a dip in sales across December and January.
The Swedish retail giant said sales in local currencies rose 2% in the three months to 30 November, coming in at SEK59.2bn (£4.9bn), while operating profits jumped 38% to SEK6.4bn, comfortably ahead of forecasts for SEK5.5bn.
The fourth-quarter operating margin widened to 10.7% from 7.4%.
Daniel Erver, chief executive, said: "Through a strengthened customer offering, good cost control and improved inventory productivity, we continue to take important steps towards all our long-term targets in a challenging environment."
However, the chain - which owns Cos, Monki, & Other Stories and Weekday, among others, as well as the eponymous H&M -acknowledged weaker trading since the period end. As a result, group sales between 1 December 2025 and 31 January 2026 are now expected to decrease by 2% in local currencies against the same period a year previously.
H&M attributed the downturn to strong sales during Black Friday, at the end of November, which then weighed on demand in December.
As at 1045 GMT, the Stockholm-listed stock was trading 1% lower.
The fast fashion segment has faced a number of headwinds recently, including higher costs, cautious consumer sentiment and stiff competition.
However, Erver insisted: "In 2026 we are continuing to strengthen the foundations for continued profitable and sustainable growth.
"We are on the right track."
Full-year operating profits came in at SEK18.4bn in 2025, on revenues of SEK228.3bn. In 2024, revenues were SEK234.5bn and profits SEK17.3bn
H&M currently has around 4,000 stores in 79 markets.
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