Fourth quarter (1 September 2025 - 30 November 2025)

• Sales in local currencies increased by 2 percent in the fourth quarter, with 4 percent fewer stores at the end of the quarter compared with the same point in time last year. Converted into SEK, net sales amounted to SEK 59,221 m (62,193). Net sales in SEK were negatively affected by a currency translation effect of around 7 percentage points due to the strengthened Swedish krona.
• Gross profit amounted to SEK 33,084 m (33,942), which corresponds to a gross margin of 55.9 percent (54.6).
• Selling and administrative expenses decreased by 3 percent in local currencies. Converted into SEK these expenses decreased by 9 percent to SEK 26,698 m (29,303).
• Operating profit increased by 38 percent to SEK 6,364 m (4,624), corresponding to an operating margin of 10.7 percent (7.4). An improved customer offering, an improved gross margin and good cost control have contributed to the increase in profit in the quarter.
• The result after tax increased to SEK 4,332 m (2,983¹), corresponding to SEK 2,72 (1.86¹) per share.
• Cash flow from operating activities after changes in working capital increased to SEK 8,406 m (6,974).
• The stock-in-trade decreased by 12 percent to SEK 35,427 m (40,348) and the composition of the stock-in-trade is good. Currency adjusted the stock-in-trade decreased by 5 percent compared with the previous year. The stock-in-trade in SEK represented 15.5 percent (17.2) of rolling 12 months sales.

Full-year (1 December 2024 - 30 November 2025)

• In local currencies net sales increased by 2 percent in the financial year 2025. Converted into SEK, the H&M group's net sales amounted to SEK 228,285 m (234,478).
• Gross profit amounted to SEK 121,821 m (125,299). This corresponds to a gross margin of 53.4 percent (53.4).
• Selling and administrative expenses decreased by 4 percent to SEK 103,292 m (107,915). In local currencies these expenses decreased by 1 percent compared with the previous year.
• Operating profit increased to SEK 18,395 m (17,306), corresponding to an operating margin of 8.1 percent (7.4).
• The result after tax increased to SEK 12,085 m (11,584), corresponding to SEK 7.58 (7.21) per share.
• Cash flow from operating activities after changes in working capital amounted to SEK 31,120 m (31,756).
• The H&M group's greenhouse gas emissions in scope 3² reduced by approximately 30 percent (24) in 2025 compared to the 2019 baseline according to preliminary figures. The target is to reduce these greenhouse gas emissions by 56 percent no later than 2030, with 2019 as baseline.
• Recently, the H&M group was A-listed by CDP³ for climate and water, providing further recognition after being ranked as industry leader in sustainability and transparency for both social and environmental issues by several independent organisations, including Stand.earth's Fashion Scorecard and Fashion Revolution's What Fuels Fashion report, in 2025.
    

• The H&M group's sales in the period 1 December 2025 - 31 January 2026 are expected to decrease by 2 percent in local currencies compared with the same period the previous year. Sales development should be seen in the light of strong sales during the Black Friday week at the end of November, which led to subdued demand in a number of markets in December. In addition, there is a negative calendar effect associated with the Chinese New Year, which this year falls in February.
• CapEx in comparable currency is planned to amount to SEK 9-10 billion for 2026. The investments are mainly allocated to the store portfolio and to tech infrastructure. Following a period of high levels of investment in the supply chain, new logistics solutions in Europe will gradually be deployed in 2026.
• The board of directors is proposing to the 2026 annual general meeting that an ordinary dividend of SEK 7.10 (6.80) per share is paid in two instalments.
• The board of directors is proposing that the 2026 annual general meeting approve a general authorisation allowing the board to buy back the group's own class B shares.

"Through a strengthened customer offering, good cost control and improved inventory productivity, we continue to take important steps towards all our long-term targets in a challenging environment," says Daniel Ervér, CEO.

1. See note 5.
2. Scope 3 excludes the use of sold products.
3. The CDP A List - published by CDP (previously known as the Carbon Disclosure Project), an independent environmental reporting platform - recognises companies for their environmental transparency and performance.

Comments by Daniel Ervér, CEO

Through a strengthened customer offering, good cost control and improved inventory productivity, we continue to take important steps towards all our long-term targets in a challenging environment.

Sales in the fourth quarter increased by 2 percent in local currencies with approximately 4 percent fewer stores during the quarter. Operating profit increased by 38 percent, resulting in an operating margin of 10.7 percent. Performance during the quarter was largely driven by a stronger customer offering, good cost control and improved inventory productivity, as well as external factors that positively affected purchasing costs.

Our work in 2025 has gradually contributed to positive development towards all our long-term targets. The sales trend is positive seen over the year as a whole, and earnings have strengthened in the second half of the year. The gross margin for the full year was at the same level as in the previous year and the operating margin increased to 8.1 percent, compared to 7.4 percent last year. As our climate goals are well integrated into the business, we have reduced our Scope 3¹ CO₂ emissions by around 30 percent compared with the 2019 baseline, according to preliminary figures. This means that we are well on the way to achieving our science-based target of a 56 percent reduction by 2030, in line with the 1.5°C target. During the quarter we received further recognition for our work within sustainability and transparency when CDP² A-listed the H&M group for climate and water.

This progress reflects determined efforts in our most important areas, with a focus on strengthening the product offering, the customer experience and our brands. Within the product offering, more efficient purchasing with shorter decision paths, an enhanced ability to quickly capture trends, improvements in the supply chain and closer cooperation with our suppliers have overall contributed to a more relevant customer offering and better inventory efficiency.

Work to further strengthen the customer experience during the year has included updating our digital store globally while at the same time increasing the pace of upgrades to our physical stores, with improvements in technology, layout and presentation.

Both H&M and COS presented their main collections for autumn and winter at the fashion weeks in London and New York respectively, which among other things created positive engagement with great reach in social media. We have also entered into various creative external collaborations. For example, H&M launched an appreciated design collaboration with Glenn Martens and announced a collaboration with Stella McCartney for 2026.

In 2026 we are continuing to strengthen the foundation for continued profitable and sustainable growth. The focus is on what is most important to our customers - to always offer the best value for money through H&M's business concept fashion and quality at the best price in a sustainable way. The start of the new year has been marked by continued geopolitical and economic uncertainty, which underlines the importance of an efficient organisation with short decision paths that operates close to the customer and has a high degree of flexibility and continued good cost control.

We are expanding through our stores and digital channels. Mostly in growth markets - including Brazil and other parts of Latin America. We are continuing to optimise the store portfolio. For 2026 we estimate that the sales effect from the store optimisation will turn around to become slightly positive. In addition to our investments in new markets, new stores and an upgraded customer experience in a large share of our existing stores, we are also investing in the tech infrastructure. More data-driven decision-making and increased use of AI are improving our accuracy and giving us more tools for expressing creativity, thereby further strengthening our customer offering.

We are on the right track. It is our employees who make this possible. With creativity, commitment and shared values, we work every day to offer fashion, quality and sustainability at a price that is accessible to many people.

1. Scope 3 excludes the use of sold products.
2. The CDP A List - published by CDP (previously known as the Carbon Disclosure Project), an independent environmental reporting platform - recognises companies for their environmental transparency and performance.
 

Communication in conjunction with the full-year report

The full-year report for the financial year 2025, i.e., 1 December 2024 - 30 November 2025, will be published at 08:00 CET on 29 January 2026, followed by a combined press and telephone conference at 09:00 CET for the financial market and media, hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg. A presentation of the report followed by a Q & A session will be held in English.

Location: H&M's head office in Stockholm, Mäster Samuelsgatan 49, 3rd floor, Ljusgården. The event will be broadcasted online and questions can also be asked by telephone. For log in details please register: https://app.webinar.net/Ke7MaVXgoOJ

To book interviews for media in conjunction with the full-year report on 29 January 2026, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.

Please note that the combined press and telephone conference starts at 09:00 CET. Also note that there will not be a separate telephone conference in the afternoon CET.
 

Contact

Joseph Ahlberg, Head of IR           +46 73 465 93 92
Daniel Ervér, CEO                          +46 8 796 55 00 (switchboard)
Adam Karlsson, CFO                      +46 8 796 55 00 (switchboard)

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46 8 796 55 00, e-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220

For more information about the H&M group visit hmgroup.com.

Information in this full-year report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CET) on 29 January 2026. This full-year report and other information about the H&M group are available at hmgroup.com.

H & M HENNES & MAURITZ AB (PUBL) was founded in Sweden in 1947 and is listed on Nasdaq Stockholm. H&M's business idea is to offer fashion and quality at the best price in a sustainable way. The group's brands are H&M (including H&M HOME, H&M Move and H&M Beauty), COS, Weekday (including Cheap Monday and Monki), & Other Stories, ARKET, Singular Society and Sellpy. The group also includes several ventures. For further information, visit hmgroup.com.