Swedish clothing chain H&M increased sales by two per cent to SEK 55.3 billion in the first quarter of its financial year. The company said this in its quarterly report today. The company started its 2025 financial year on December 1.
Gross profit reached SEK 27.17 million despite external problems
Gross profit amounted to 27.17 million Swedish crowns. This corresponds to an operating margin of 49.1 percent. The company said margins were affected by “negative external factors” such as depreciation, investments in customer offerings and the strong Swedish krona. The chain has increased spending on marketing in a bid to strengthen its brand, but returns on these investments have been slow to materialise, Reuters reported.
“Our sales and profit in the quarter were slightly weaker than we had planned,” Chief Executive Daniel Erver said. However, he added that the first quarter has long been the weakest period of the year for the company. “We are confident about the future,” he said.
H&M: World’s Second-Largest Clothing Retailer Behind Inditex
H&M, the full name of H&M Hennes & Mauritz AB, is the world’s second-largest listed clothing retailer. The company was founded in 1947. In addition to its main brand, H&M also owns the COS, Monki, Weekday, Cheap Monday, & Other Stories, H&M HOME and ARKET brands.
The largest global clothing retailer is the Spanish company Inditex, which owns, among others, the Zara brand. The company reported a 10.5 percent increase in sales to 38.6 billion euros in the last financial year. Operating profit EBITDA increased 8.9 percent to 10.7 billion euros.
Source: Reuters
