H&M Hennes & Mauritz AB released its nine-month 2025 report, showing slight sales growth in local currencies but lower SEK figures due to currency impact.
Local Currency Sales Grow While SEK Figures Decline
H&M Hennes & Mauritz AB published its financial results for the period from December 1, 2024, to August 31, 2025. Net sales in local currencies increased by 2 percent, reflecting stable demand across key regions. However, the stronger Swedish krona (SEK) weighed on reported numbers, bringing total net sales down to SEK 169.1 billion from SEK 172.3 billion a year earlier.
In the third quarter alone, sales grew by 2 percent in local currencies but dropped to SEK 57 billion from SEK 59 billion after translation effects. The company also continued to reduce its physical footprint, ending the quarter with 4 percent fewer stores than the same period last year.
Gross Margin Holds, Operating Profit Improves
Gross profit for the first nine months reached SEK 88.7 billion with a gross margin of 52.5 percent, slightly below last year’s 53 percent. The third quarter showed a margin of 52.9 percent, supported by supply chain improvements and better purchasing conditions.
Operating profit came in at SEK 12 billion for the nine months, while the third quarter delivered SEK 4.9 billion — a 40 percent year-over-year increase. CEO Daniel Erver said the profit growth reflects stronger product offerings and strict cost control.
Expansion in Brazil and Latin America
The quarter marked an important move into Brazil, where H&M opened its first store and online platform in August. According to Daniel Erver, early customer response was positive, and the brand sees significant potential for growth in Latin America. New franchise operations have started in El Salvador and Venezuela, while further openings are planned in Paraguay and Malta.
Sustainability Leadership Recognized
The group secured the top spot in Fashion Revolution’s “What Fuels Fashion?” report, ranking first among 200 global fashion companies for transparency in carbon reduction and sustainability reporting.
Outlook Remains Cautious
Autumn collections have been well received, and September sales are expected to match last year’s levels despite a high comparison base. The company continues to monitor global trade conditions and currency movements closely.
Cash flow from operations reached SEK 22.7 billion, and total available liquidity, including unused credit lines, stood at SEK 40.2 billion, giving the group a solid financial position heading into the final quarter of the fiscal year.
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