The Swedish fashion group H&M Group (H&M) suffers from higher freight costs, unfavorable exchange rates and discounts. As a result, the group recorded a decline in operational profit and profit after taxes in the first half of the 2025 financial year.
In a financial update, the H&M Group reports an operational result of 7.1 billion Swedish crowns (around 644 million euros). This is a difference of over two billion Swedish crowns compared to the previous year.
The profit after taxes records an equally large decline of around two billion Swedish crowns. Due to the decline, the profit after taxes for the first half of the year amounts to 4.5 billion Swedish crowns.
“The quarterly result was negatively influenced,” said H&M Group Chief Executive Officer (CEO) Daniel Ervér. “The reasons for this are higher purchase prices due to an expensive US dollar and higher freight costs. We have continued to invest in the customer offer to strengthen it and offer customers even more value for your money inside.”
The group’s sales have remained stable in the reporting period. Thanks to growth, it amounts to 112 billion Swedish crowns.
The H&M Group includes the brands H&M, Arket, & other Stories, Cos, Weekday, Cheap Monday, Sellpy and Singular Society. The group runs over four thousand branches in 970 markets and has an online shop in 60 markets.
This article was used with digital tools translated.
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