H&M Group has reported a solid financial performance for the fourth quarter and full financial year ended November 30, 2025, reflecting steady sales growth, improved profitability, and continued progress towards long-term strategic and sustainability targets.

For the fourth quarter period from September 1, 2025, to November 30, 2025, sales in local currencies increased by 2 percent, despite operating with approximately 4 percent fewer stores compared to the same period last year. Converted into Swedish krona (SEK), net sales amounted to SEK 59,221 million, compared to SEK 62,193 million in the previous year. Net sales in SEK were negatively impacted by a currency translation effect of around 7 percentage points, largely due to the strengthened Swedish krona.

Gross profit for the quarter stood at SEK 33,084 million, down slightly from SEK 33,942 million in the corresponding period last year, translating into a gross margin of 55.9 percent, compared to 54.6 percent previously. Operating profit rose significantly by 38 percent to SEK 6,364 million from SEK 4,624 million, resulting in an operating margin of 10.7 percent, up from 7.4 percent last year. The improvement was driven by a stronger customer offering, higher gross margin, and effective cost control.

For the full financial year from December 1, 2024, to November 30, 2025, H&M Group reported a 2 percent increase in net sales in local currencies. Converted into SEK, full-year net sales amounted to SEK 228,285 million, compared to SEK 234,478 million in the previous year.

Gross profit for the year reached SEK 121,821 million, down from SEK 125,299 million, corresponding to a stable gross margin of 53.4 percent, unchanged from the previous year. Operating profit increased to SEK 18,395 million from SEK 17,306 million, resulting in an operating margin of 8.1 percent, compared to 7.4 percent in the previous year.

The group’s result after tax rose to SEK 12,085 million from SEK 11,584 million, translating to earnings of SEK 7.58 per share, up from SEK 7.21 per share last year. Cash flow from operating activities after changes in working capital stood at SEK 31,120 million, compared to SEK 31,756 million in the previous year.

Commenting on the performance, Daniel Ervér, Chief Executive Officer of H&M Group, said that through a strengthened customer offering, strong cost control, and improved inventory productivity, the company continues to make progress towards its long-term targets despite operating in a challenging environment.

He noted that fourth-quarter sales growth of 2 percent in local currencies, achieved with fewer stores, and the 38 percent increase in operating profit reflected the company’s focus on customer value, operational efficiency, and external factors that positively influenced purchasing costs.

Ervér stated that the company’s work throughout 2025 has gradually contributed to positive development across all strategic priorities. While full-year gross margins remained at the same level as the previous year, operating margins improved to 8.1 percent. He also highlighted the group’s sustainability progress, noting that preliminary figures indicate a reduction of around 30 percent in Scope 3 CO₂ emissions compared with the 2019 baseline, positioning the company well towards achieving its science-based target of a 56 percent reduction by 2030 in line with the 1.5°C climate goal.

During the quarter, H&M Group received further recognition for its sustainability and transparency efforts, with CDP A-listing the group for both climate and water.

The CEO further emphasized that progress reflects focused efforts to strengthen product offerings, customer experience, and brand positioning. More efficient purchasing processes, shorter decision-making paths, faster trend responsiveness, supply chain improvements, and closer supplier cooperation have contributed to greater relevance in product offerings and improved inventory efficiency.

Enhancing customer experience remained a priority in 2025, with the company upgrading its digital store globally while accelerating improvements to physical stores through enhanced technology, layouts, and visual presentation.

Both H&M and COS showcased their main autumn-winter collections at the fashion weeks in London and New York respectively, generating strong social media engagement. The group also entered several creative collaborations, including a successful design partnership with Glenn Martens and the announcement of a collaboration with Stella McCartney for 2026.

Looking ahead, Ervér said that in 2026, H&M Group will continue strengthening its foundation for profitable and sustainable growth, focusing on delivering the best value for money through its business concept of offering fashion and quality at the best price in a sustainable manner.

He acknowledged that continued geopolitical and economic uncertainty at the start of the new year underlines the importance of maintaining an efficient, flexible organisation with short decision paths and strong cost discipline.

The group plans to expand further through both physical stores and digital channels, particularly in growth markets such as Brazil and other parts of Latin America, while continuing to optimise its store portfolio. For 2026, the company expects the sales impact of store optimisation to turn slightly positive.

In addition to investments in new markets, new stores, and upgraded customer experiences, H&M Group is also strengthening its technology infrastructure. Increased use of data-driven decision-making and artificial intelligence is expected to enhance accuracy, creativity, and customer engagement.

Concluding his remarks, Ervér stated that the company is on the right track, crediting employees for their creativity, commitment, and shared values in delivering fashion, quality, and sustainability at accessible prices.