H & M Hennes & Mauritz AB

Latest Results (31.08.2026):

H & M Hennes & Mauritz AB — Second quarter 2026: Sales were slightly below last year in SEK (SEK 54,828 m vs SEK 56,714 m) while local‑currency sales were roughly flat; profitability improved driven by a higher gross margin and operational efficiency, with operating profit excluding one‑time costs up 11% to SEK 6,592 m and operating margin rising to 12.0%.

Sales

Q2 net sales: SEK 54,828 m (56,714). Sales in local currencies were roughly in line with the prior year despite ~3% fewer stores vs last year. First half net sales: SEK 104,435 m (112,047); local‑currency sales down ~1% H1.

Gross profit & margins

Q2 gross profit SEK 31,045 m (31,425) -> gross margin 56.6% (55.4). H1 gross profit SEK 56,183 m (58,594) -> gross margin 53.8% (52.3). Higher margins were a key driver of improved profitability.

Operating profit

Q2 operating profit excl. one‑time costs SEK 6,592 m (5,914), +11%, margin 12.0% (10.4). Reported Q2 operating profit SEK 5,913 m (5,914) after SEK 679 m restructuring charge. H1 operating profit excl. one‑time costs SEK 8,104 m (7,117), +14%; reported H1 operating profit SEK 7,425 m (7,117), margin 7.1% (6.4).

Costs & restructuring

Selling & administrative expenses Q2 SEK 25,133 m (25,489), down 1% in SEK; in local currencies +1%. The quarter included SEK 679 m of one‑time restructuring costs related to organisational changes; excluding those, S&A expenses fell in local currency.

Net result & cash flow

Q2 result after tax SEK 3,963 m (3,962) — SEK 2.49 (2.48) per share. H1 result after tax SEK 4,667 m (4,541) — SEK 2.95 (2.85) per share. Cash flow from operating activities Q2 SEK 10,591 m (8,528), +24%; H1 SEK 14,616 m (12,729), +15%.

Inventory

Stock‑in‑trade down 10% to SEK 34,942 m (38,817); currency‑adjusted inventory down ~2% year‑on‑year. Inventory represented 15.8% (16.6) of rolling 12‑month sales and composition is described as good, though tighter inventory management has at times constrained availability.

Outlook & expansion

Sales in June 2026 expected to be on par with June 2025. Continued expansion in Latin America with new stores planned in Paraguay (H2 2026), Argentina (2027) and recently opened stores including Rio de Janeiro and a reopened Stockholm flagship.

Management commentary

CEO Daniel Ervér highlights stronger profitability and inventory productivity from long‑term changes, notes one‑time restructuring costs (SEK 679 m), and signals planned upgrades to digital infrastructure to improve assortment planning and decision support.