Swedish retailer H&M Hennes & Mauritz AB maintained its operating profit in the second quarter of fiscal year 2026 at nearly the same level as last year, despite a decline in sales in Swedish kronor, an improvement in gross margin, and a reduction in inventory.
According to the company’s report, H&M’s net sales for March–May totaled SEK54.828 billion, compared to SEK56.714 billion for the same period last year. In local currencies, sales were nearly at last year’s level, while in Swedish kronor, the figure was negatively impacted by the krona’s appreciation.
Gross profit in the second quarter was SEK31.045 billion, compared to SEK31.425 billion a year earlier, and the gross margin rose to 56.6% from 55.4%. The company attributed the margin improvement primarily to efforts to improve supply chain efficiency.
Operating profit, excluding one-time expenses, rose by 11% to SEK6.592 billion, and the corresponding operating margin increased to 12% from 10.4%. At the same time, operating profit including expenses amounted to SEK5.913 billion compared to SEK5.914 billion a year earlier, with an operating margin of 10.8% compared to 10.4%.
One-time restructuring costs for the quarter totaled SEK679 million and were related to organizational changes in the company’s sales markets and central commercial structures.
H&M’s net profit in the second quarter was SEK3.963 billion, compared to SEK3.962 billion a year earlier, with earnings per share of SEK2.49, compared to SEK2.48.
For the first half of fiscal year 2026, the group’s net sales declined to SEK104.435 billion from SEK112.047 billion; in local currencies, the decline was 1%. Operating profit for the first half of the year rose to SEK7.425 billion from SEK7.117 billion, while the operating margin increased to 7.1% from 6.4%. Net profit rose to SEK4.667 billion from SEK4.541 billion.
Cash flow from operating activities rose 24% in the second quarter to SEK10.591 billion and 15% for the first half of the year to SEK14.616 billion.
Inventory as of the end of May decreased by 10% to SEK34.942 billion from SEK38.817 billion a year earlier. In currency-adjusted terms, inventory decreased by 2%. The inventory-to-sales ratio for the past 12 months fell to 15.8% from 16.6%.
“Our long-term efforts have strengthened profitability and give us good opportunities to create even more value for our customers,” said H&M CEO Daniel Erver.
According to him, sales for the quarter were slightly below target, but profitability and the inventory situation developed positively. The company continues to streamline its organization, bring decision-making closer to the customer, and will begin upgrading its digital infrastructure in the second half of the year.
As of May 31, 2026, the H&M Group had 4,038 stores, compared to 4,166 a year earlier. In the first half of the year, the company opened 41 stores and closed 104. Online sales account for more than 30%.
In 2026, H&M plans to open about 90 new stores and close about 170. The company continues its expansion in Latin America: its first store in Rio de Janeiro opened in April; in the second half of 2026, H&M plans to enter the Paraguayan market, and in 2027, the Argentine market through a franchise.
H&M Group’s sales in local currencies in June 2026 are expected to be on par with the same month last year.
H&M Group is one of the world’s largest fashion retailers. The group includes the brands H&M, COS, Weekday, & Other Stories, ARKET, H&M HOME, and Sellpy.
The full version of the report is available at this link.
H&M has launched an online store in Ukraine, according to a statement by H&M Hennes & Mauritz AB’s press service to the Interfax-Ukraine news agency.
“The launch of hm.com is a historic event for H&M in Ukraine. I am very pleased that our long-awaited online store is finally available to all customers. I believe that a combination of a strong offline and online presence is key to building strong relationships with our customers,” commented Michalina Ludwiczak, Sales Manager for Sales Market Poland at H&M.
Customers in Ukraine can order items from the main collections online, as well as H&M Home (excluding furniture and lamps), H&M Move, and special lines, such as H&M Studio. Subscribers to the H&M Fashion Newsletter are the first to receive information about exclusive offers, current selections, presentations of new collections, and other news.
The first H&M store in Ukraine opened in 2018. Today, the brand has nine physical stores: seven in Kyiv, one in Odesa (renovated in June 2025), and one in Lviv.
H&M will launch an online store in Ukraine in the first quarter of 2026, according to the annual sustainability report of H&M Hennes & Mauritz AB, published today.
According to the report, the H&M Group ended the 2025 financial year with moderate sales growth and a significant improvement in profitability. Net sales for the financial year increased by 2% in local currencies, while the number of stores at the end of the financial year decreased by 4% to 4,101 stores. Converted into Swedish kronor, H&M Group’s net sales amounted to SEK 228,285 million (SEK 234,478 million for 2024).
“Thanks to an enhanced customer offering, effective cost control and improved inventory management, we continue to take important steps towards achieving all our long-term goals, even in challenging conditions,” says H&M Group CEO Daniel Erver.
At the same time, H&M continues to move towards its sustainability goals, including reducing emissions in the supply chain. In 2026, the group plans to continue investing in its omnichannel model, logistics, and customer experience, while maintaining its focus on long-term growth. In particular, H&M will launch an online store in Ukraine in the first quarter of 2026.
The optimization of the store portfolio continues through the opening, closing, and renovation of stores. Around 80 new stores are planned to open worldwide in 2026, while around 160 stores are planned to close. Most of the openings will be in emerging markets. Paraguay will become a new market for H&M in 2026, and H&M will also open its first franchise store in Malta in the first half of 2026.
Swedish fashion-retailer H&M plans to start a gradual reopening in Ukraine from November 2023.
“Earlier it was reported that H&M Group temporarily closed its stores in Ukraine from February 24, 2022. The company has been in close dialog with partners and authorities and now plans to gradually reopen most of its stores in the country from November 2023,” the company’s website pointed out on Thursday.
The statement emphasizes that preparations are underway to reopen most stores where possible, with employee safety remaining a top priority.
H&M also plans to participate in relief and recovery programs, cooperate with local organizations and support Ukraine in the reconstruction process.
Swedish company Hennes&Mauritz AB (H&M), owner of Europe’s second largest clothing chain, opened its first store in Ukraine in 2018.
H&M Hennes&Mauritz LLC was established in 2013. According to the data of the Unified state register of legal entities and physical persons-entrepreneurs, the ultimate beneficiary is Stefan Persson (Sweden).
At the beginning of the full-scale invasion, the H&M chain in Ukraine had eight outlets: five in Kiev, one each in Odessa, Kharkiv and Lviv.
Swedish fashion retailer H&M will open its sixth store in Kyiv on December 10 in the Respublika Park shopping and entertainment center, the press service of the retailer reported.
“We are pleased to announce the opening of an H&M store in the Respublika Park shopping and entertainment center. By increasing the number of outlets in Ukraine, we continue to provide the best customer experience and follow our constant principle – fashion and quality at the best price with care for the environment,” Regional Manager of H&M in Ukraine and Eastern Europe Mehmet Arisoy said.
The store with a total area of about 2,200 square meters is made in a new brand concept with the least impact on the environment. The materials used in the interior are more environmentally friendly, and the lighting with the most modern LED technologies, combined with an innovative ventilation system, reduces the store’s carbon footprint by 40%.
The H&M store will present clothes for the whole family. On the day of its opening, there will be a special offer – discounts up to 50%.
“The opening of H&M in the Respublika Park shopping and entertainment center is an opportunity to become even closer to our customers. I am sure that due to its location in a dynamically developing area of the Ukrainian capital, as well as the innovativeness and attractiveness of the shopping and entertainment center itself, the new store will very soon become a favorite shopping destination for Kyiv residents,” Olha Oliynyk, PR & Marketing Manager of H&M in Ukraine, said.
As of November of this year, the H&M chain in Ukraine has eight outlets: five in Kyiv, one each in Odesa, Kharkiv and Lviv.
The Swedish company Hennes & Mauritz AB (H&M), the owner of the second largest clothing store chain in Europe, opened the first store in Ukraine in 2018.
H&M Hennes & Mauritz LLC was established in 2013. According to the data of the Unified State Register of Legal Entities and Individual Entrepreneurs, the ultimate beneficiary is Stefan Persson (Sweden).
Swedish retailer H&M will open its first store in Kharkiv in May 2021 in new Nikolsky shopping mall, expanding its chain in Ukraine to six outlets, the retailer’s press service said.
The total area of the store is 2,100 square meters, of which about 1,700 square meters are shopping area. This is the sixth store of the chain in Ukraine and the first outside the Ukrainian capital.
“We see a high interest in the H&M brand in the regions and therefore are pleased to announce the opening of a store in Nikolsky shopping center in Kharkiv. I am sure that Kharkiv residents will appreciate both a wide range of goods and a modern store concept,” H&M Ukraine CEO Dominik Fantachino said.
According to H&M, the space of the store will differ from other stores of the chain in Ukraine with an updated interior concept. Buyers can expect a wide range of women’s, men’s, teenage and children’s clothing.
