H&M reveals ‘weaker than planned’ sales despite well-received womenswear

H&M Group, which has a portfolio made up of H&M, &Other Stories, Monki, Weekday and more, has today revealed that its net sales for the first quarter of 2025 increased by 3% to SEK 55.3 billion (£4.3 billion).

For 1 December 2024 to 28 February 2025, Gross profit amounted to SEK 27.16 billion (£2 billion), down from SEK 27.65 billion (£2.13 billion). H&M said this was due to "negative external factors, increased markdowns and investments in the customer offering".

Operating profit amounted to SEK 1.2 billion (£92 million), down from SEK 2.07 billion (£160 million).

During the period, the company continued to optimise its store portfolio by closing select stores. It went into the quarter with nearly 120 fewer stores compared to the same time last year, and it had 40 net store closures during the period.

Daniel Ervér, CEO at H&M Group, said: "Operating profit and profitability were impacted by temporarily challenging development of the gross margin. Our main priorities are a strengthened product offering, a more inspiring shopping experience and a stronger brand. Through this, we create the conditions for long-term, profitable and sustainable growth.

Looking ahead, the H&M group’s sales in the month of March 2025 are expected to increase by 1% in local currencies compared with to the year prior. H&M in particular is set to receive a sales boost from its highly anticipated collaborative collection with Magda Butrym that's set to launch on 24 April.

Daniel Ervér, CEO at H&M Group

Ervér continued: "Although we have made important progress in our plan and have good cost control, our sales and earnings in the quarter were somewhat weaker than planned – but the first quarter is the smallest quarter of the year for us in terms of sales and margin, and we are confident going forward.

"We can see that the improvements we have made, especially in the women’s assortment, are starting to have a positive effect. Here we have simplified the organisation and become faster at adapting to new trends and creating a more relevant assortment.

"Through our omni-model we are continuing to integrate the physical and digital sales channels, making it easier for our customers to find what they are looking for. The upgraded digital store was rolled out to more markets in the quarter and has been well-received by our customers. Upgrades to our physical stores continue to be given high priority. In addition to rebuilding key stores in several major cities, we are expanding customer experience upgrades to more stores in more markets during the year.

"With macroeconomic and geopolitical uncertainty, it is important that we continue to focus fully on our plan and offer the best combination of fashion, quality, price and sustainability for everyone."