Sweden · Delayed Price · Currency is SEK H & M Hennes & Mauritz AB Earnings Call Transcripts
Fiscal Year 2026
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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 Paris, inventory reduction, and sustainability leadership were key highlights, while tariffs and consumer caution remain 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 markdowns are expected to rise in Q3 amid high discounting pressure and cautious consumer sentiment.
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Sales grew 3% in SEK and 2% in local currencies, with strong performance in Europe but continued challenges in the U.S. Gross margin declined to 49.1% due to higher costs and markdowns, but inventory is healthy and digital channels are performing well. Focus remains on brand strength, cost control, and adapting to external risks.
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 margins, and robust cash flow, with positive sales trends across all regions. External headwinds like input costs and currency effects challenge the 10% margin target, but investments in stores, digital, and high-growth markets continue.