H & M Hennes & Mauritz AB Six-month report 2026

Second quarter (1 March 2026- 31 May 2026)

• Net sales amounted to SEK 54,828 m (56,714) in the second quarter. Sales in local currencies were fairly in line with last year, with around 3 percent fewer stores at the end of the quarter compared with the same point in time last year.
• Gross profit amounted to SEK 31,045 m (31,425), which corresponds to a gross margin of 56.6 percent (55.4).
• Selling and administrative expenses decreased by 1 percent to SEK 25,133 m (25,489). In local currencies the increase was 1 percent. Selling and administrative expenses were charged with restructuring costs of SEK 679 m (0) relating to the implementation of organisational changes in the company's sales markets and central sales organisations. Excluding these one-time costs, selling and administrative expenses decreased by 2 percent in local currencies.
• Operating profit excluding one-time costs increased by 11 percent to SEK 6,592 m (5,914), corresponding to a margin of 12.0 percent (10.4). Operating profit amounted to SEK 5,913 m (5,914), corresponding to an operating margin of 10.8 percent (10.4).
• The result after tax amounted to SEK 3,963 m (3,962), corresponding to SEK 2.49 (2.48) per share.
• Cash flow from operating activities increased by 24 percent to SEK 10,591 m (8,528).
• Stock-in-trade decreased by 10 percent to SEK 34,942 m (38,817) and the composition of the stock-in-trade is good. Currency adjusted the stock-in-trade decreased by 2 percent compared with the previous year. The stock-in-trade in SEK represented 15.8 percent (16.6) of rolling 12 months sales.
• During the second quarter the first H&M store in Rio de Janeiro opened and the flagship store on Hamngatan in Stockholm was re-opened and met with great interest and was well-received by our customers.

First half-year (1 December 2025- 31 May 2026)

• The H&M group's net sales amounted to SEK 104,435 m (112,047). In local currencies net sales decreased by 1 percent in the first half of the year.
• Gross profit amounted to SEK 56,183 m (58,594), which corresponds to a gross margin of 53.8 percent (52.3).
• Selling and administrative expenses decreased by 5 percent to SEK 48,758 m (51,427). In local currencies these expenses were at the same level as in the previous year and excluding the one-time costs in the second quarter these decreased by 1 percent.
• Operating profit excluding one-time costs increased by 14 percent to SEK 8,104 m (7,117), corresponding to a margin of 7.8 percent (6.4). Operating profit increased to SEK 7,425 m (7,117), corresponding to an operating margin of 7.1 percent (6.4).
• The result after tax increased to SEK 4,667 m (4,541), corresponding to SEK 2.95 (2.85) per share.
• Cash flow from operating activities increased by 15 percent to SEK 14,616 m (12,729).
   

• The H&M group's sales in local currencies in the month of June 2026 are expected to be on par with the same month the previous year.
• The expansion in Latin America is continuing with the opening of the first H&M store in Paraguay during the second half of 2026 and in Argentina during 2027.

"Our long-term work has strengthened profitability and gives us good opportunities to create even more value for our customers,"
says Daniel Ervér, CEO.

 
Comments by Daniel Ervér, CEO

Our long-term work has strengthened profitability and gives us good opportunities to create even more value for our customers.

Sales in the quarter were somewhat lower than planned, while profitability and the stock-in-trade situation developed well. The profitability improvement and increased inventory productivity are in line with our long-term work to lay the foundations for sustainable and profitable growth. The tighter inventory management has, however, in some cases affected our ability to fully meet demand. Our assessment is that there is potential to further increase precision in order to create a better balance between availability and demand.

Operating profit¹ increased to SEK 6.6 billion and the operating margin¹ strengthened by 1.6 percentage points to 12.0 percent. The quarter's improvement was driven by a higher gross margin, greater operational efficiency and good cost control.

We have continued to reduce the complexity of the organisation and moved decisions closer to the customer. The changes enhance our local relevance and create better conditions to meet customers' needs faster. This resulted in one-time costs of SEK 679 million during the quarter.

In the second half of the year we will start upgrading the digital infrastructure that will support our development. The new infrastructure will provide better decision support, faster processes and greater precision in how we plan our assortment and stock-in-trade.

We operate in a world that continues to be characterised by uncertainty and rapid change. The improvements we have made in recent years have strengthened profitability, simplified operations and increased our ability to act closer to the customer. Centred on the customers' needs, we continue to strengthen the product, customer experience and brand in order to always offer the best combination of fashion and quality at the best price, in a sustainable way.

¹.Before restructuring costs.

 
Communication in conjunction with the six-month report

The six-month report, i.e., 1 December 2025 - 31 May 2026, will be published at 08:00 CEST on 25 June 2026, followed by a combined press conference and webcast at 09:00 CEST, held in English for the financial market and media. There will also be an opportunity to ask questions by telephone. The press conference will be hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.

Location: H&M's head office in Stockholm, Mäster Samuelsgatan 49, 3rd floor, Ljusgården.

To follow the webcast and access the presentation, please register via this link: https://edge.media-server.com/mmc/p/emb46y9j

To ask questions during the Q&A session, you must join by phone. Please register via this link to receive your personal dial-in details: https://register-conf.media-server.com/register/BI5203d7a3b22845e2a554ce9594a02c59

To book interviews for media in conjunction with the six-month report on 25 June 2026, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.
 
Contact

  
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 interim 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 (CEST) on 25 June 2026. This interim 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.