The Swedish fashion group H&M wants to actively expand into emerging countries such as Brazil and India.
Chief Executive Officer (CEO) Daniel Erver announced the expansion plans. The reason for this is the weakening consumption expenditure in the European core region and the impairment of demand in the United States, the second largest market in the company, by the US tariffs. In addition to India, he also sees greater growth opportunities in Latin America, the CEO told the Reuters news agency.
H&M reported a significant increase in financial results for the third quarter of 2025 on Thursday. The operational margin improved from 5.9 percent to 8.6 percent. Sales grew by two percent in local currencies, although the company operated four percent fewer branches. During the telephone conference for investor: In the inside after publishing the results of the third quarter, Erver admitted that H&M was working hard to stay a growth company. He was enthusiastic about the possibilities in Brazil, based on the positive response of the customer: inside.
The company continues the optimization of its branch portfolio. This will probably have a slight negative impact on sales in the fourth quarter. Joseph Ahlberg, head of the investor relation department, confirmed that the optimization will concentrate on Brazil as a key element of the strategy. But it also includes opportunities in other parts of the world. In addition, there is still a need to consolidate parts of the portfolio in which the KUN: interior demand is missing. In view of the macroeconomic uncertainty, the management was optimistic about macroeconomic uncertainty. It referred to strong profits in the supply chain and selective price adjustments in the run -up to the expected customs loads in the fourth quarter.
H&M recently introduced its premium brand COS in India and opened a branch in Delhi in the fourth quarter. The company thus pursues the strategy of using the “great opportunities for positioning in the area of affordable luxury” on the market. The retailer opened his first branch in Brazil in August. Two others are planned by the end of November and an additional four for 2026, including one location in Rio de Janeiro. H&M also plans a broader expansion in Latin America. Market launches are planned for the fourth quarter in Venezuela and for next year in Paraguay after a branch in El Salvador recently opened.
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