Sweden · Delayed Price · Currency is SEK H & M Hennes & Mauritz AB Earnings Call Transcripts
Fiscal Year 2026
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Q2 profit margin reached 12% (excluding one-offs), with gross margin up to 56.6% and improved operational efficiency. Sales were flat year-over-year amid store optimization, while online sales grew. Outlook remains cautious due to volatile external factors and weak Western European demand.
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Profitability improved with higher gross and operating margins, despite a 1% local currency sales decline and ongoing cautious consumer sentiment. Inventory productivity reached a decade high, and supply chain improvements drove margin gains, while external FX tailwinds are expected to moderate.
Fiscal Year 2025
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Q4 and full-year 2025 delivered 2% sales growth and significant margin improvement, with strong cost control, inventory efficiency, and sustainability progress. 2026 guidance focuses on profitable growth, tech investment, and navigating currency and cost headwinds.
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Q3 2025 saw 2% sales growth and a significant margin improvement, driven by supply chain gains, cost efficiencies, and strong digital performance. Expansion in Brazil and ongoing store optimization support future growth, while tariffs and consumer caution remain key risks.
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Q2 2025 saw a 1% sales increase in local currencies, with operating profit at SEK 5.9 billion and a 10.4% margin. Portfolio brands, especially COS, outperformed, while inventory growth slowed and digital upgrades advanced. Competitive pressures and currency effects weighed on results.
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Sales grew 3% in SEK and 2% in local currencies, with strong digital and women's wear performance but weaker U.S. and Northern Europe results. Gross margin declined to 49.1% due to higher costs and markdowns, while inventory rose 9%. Cost control remains strong and external headwinds are expected to ease in H2.
Fiscal Year 2024
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Sales and profitability improved in 2024, driven by strong women's wear, online growth, and cost control. Strategic focus remains on organic growth, store upgrades, and sustainability, with continued investment in marketing and supply chain flexibility into 2025.
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Q3 sales matched last year in local currencies, with September up 11% and strong product launches. Operating profit was hit by currency and higher marketing costs, but margin was stable excluding FX. 2024 margin will be below 10%, with continued investments in brand, product, and store optimization.
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Q2 saw strong profit growth, improved sales, and robust cash flow, driven by well-received collections and effective cost control. External headwinds like input costs and currency pose challenges for H2, but investments in stores, digital, and supply chain continue.