The Swedish clothing group Hennes & Mauritz AB suffered a slight decline in sales in the 2024/25 financial year, not least due to the adverse market conditions and negative currency effects. However, thanks to successful cost-cutting measures, he was able to improve his results. This emerges from the current annual report that the parent company of brands such as H&M, Cos, Weekday, & Other Stories and Arket presented on Thursday.
Accordingly, group sales in the financial year ended at the end of November amounted to 228.3 billion Swedish crowns (21.7 billion euros). This corresponded to a decrease of three percent compared to the previous year. However, in the respective local currencies, revenues grew by two percent.
Negative currency effects are weighing on sales development
Negative currency effects as a result of the appreciation of the Swedish krona impacted sales development in all international markets. Revenues in Western Europe roughly reached the previous year’s level. However, sales declined in the Nordic countries (-2 percent) as well as in Eastern Europe (-1 percent), Southern Europe (-1 percent), North and South America (-5 percent) as well as in Asia, Oceania and Africa (-7 percent).
Thanks to a stable gross margin and cost reductions, the group was able to increase its operating profit by six percent to 18.4 billion Swedish crowns. Net profit attributable to shareholders increased by five percent to 12.2 billion Swedish crowns (1.2 billion euros).
CEO Daniel Ervér emphasized that the group had made “positive developments with a view to its long-term goals” in the past financial year despite difficult market conditions. “The sales trend was positive throughout the year and profits became stronger in the second half of the year,” he said in a statement.
The group wants to continue investing in the technical infrastructure
He also gave an overview of the strategic priorities. “We are expanding through our branches and digital channels, especially in growth markets – including Brazil and other parts of Latin America,” emphasized Ervér. At the same time, the branch portfolio will be further optimized.
“For 2026, we expect the effects of branch optimization to have a slightly positive impact on sales,” explained the CEO. “In addition to our investments in new markets, new branches and improved customer experiences in the majority of our existing branches, we are also investing in technical infrastructure.” Among other things, the group is planning “the increased use of AI”.
However, the start of the new financial year was cautious: in the period from December 1st to January 31st, the company announced that, according to available figures, revenue was two percent below the previous year’s level after adjusting for currency effects. The reasons for the decline include strong sales during the Black Friday week at the end of November, which led to lower demand in December, and the fact that Chinese New Year does not fall until February this year.
