H&M Group's Q1 FY2026 Operating Profit Increased by 26% Year-over-Year

According to H&M Group’s financial report for the first quarter of fiscal year 2026 (from December 1, 2025, to February 28, 2026), the group reported net sales of 49.607 billion Swedish Krona in local currency, with operating profit increasing by 26% year-over-year to 1.512 billion Swedish Krona and an operating margin of 3.0%; gross profit was 25.138 billion Swedish Krona, with a gross margin rising to 50.7%. Selling and administrative expenses decreased by 9% in Swedish Krona, and inventory fell by 16% year-over-year to 34.608 billion Swedish Krona, while cash flow from operating activities (including changes in working capital) reached 4.025 billion Swedish Krona. The group expects sales in March 2026 to increase by 1% year-over-year in local currency.

H&M Group CEO Daniel Ervér stated that cost control and improved gross margins have effectively enhanced the group’s profitability in a market environment characterized by cautious consumption and currency fluctuations.

In this quarter, the group increased its investment in the creative ecosystem, relaunching the H&M Design Award, which covers over 60 institutions in 25 countries, with eight new countries including Australia and Spain joining the competition. Collaborating institutions in China have expanded to include the Central Academy of Fine Arts, Tsinghua University Academy of Arts and Design, and Donghua University.

In the Greater China region, H&M once again joined forces with Shanghai Fashion Week to launch the JACQUES WEI × H&M designer collaboration series, strengthening local creative connections and communication with the younger consumer demographic.

The group will continue to advance its growth strategy focused on profitability and market relevance, optimizing store layouts and upgrades, creating more competitive products and consumer experiences, and focusing on design, pricing, and sustainability efforts to support stable long-term performance improvements.

(H&M Group)