During the financial year December 1, 2024 to November 30, 2025, the Group generated sales of SEK 228 billion. Operating profit amounted to SEK 18.4 billion, an increase from the previous year’s SEK 17.3 billion. This resulted in an operating margin of 8.1 percent for the full year.
Digital Presence is Growing
Just over 30 percent of the fashion group’s sales now take place online. The company currently operates digital commerce in a total of 61 online markets. During the year, H&M launched an upgraded digital store globally, with new search functions, recommendations and redesigned product pages. The Group is working to integrate its physical stores with the digital supply chain to create a seamless customer experience across all channels.
The company’s CEO, Daniel Ervér, comments on the past year in the report:
We are strengthening our offering and demonstrating that growth, profitability and reduced emissions can go hand in hand. In 2025, we continued to take important steps towards all our long-term goals: profitability increased, the sales trend was positive and our carbon emissions decreased, says Daniel Ervér.
Expansion on Platforms and Within Second Hand
Several brands within the Group have also expanded their digital reach via external e-commerce platforms during the year. The & Other Stories brand has carried out a digital expansion to Zalando in Germany, while ARKET has expanded its digital presence to both Zalando and The Iconic.
Sales of second hand also continued to increase, driven by the Group’s Sellpy platform and its own brands. Second-hand sales are now offered in 26 markets and accounted for 0.8 percent of the H&M Group’s total turnover during the year. This represents an increase in the second-hand share of 31 percent compared to 2024.
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Strengthened Profitability at the Beginning of 2026
The positive profitability trend looks set to continue into the new financial year. In the company’s recent quarterly report for the period December 2025 to February 2026, the H&M Group reports an operating profit that increases by a full 26 percent to just over SEK 1.5 billion, which gives an improved operating margin of 3 percent. Despite a strong strengthening of the Swedish krona which weighed on turnover in SEK, and an initially weaker demand in December, sales turned upwards towards the end of the period thanks to well-received spring collections. This positive sales development is also expected to continue during March.
Good cost control and improved gross margin contributed to strengthened profitability in a quarter characterized by restrained consumption and large currency translation effects, comments CEO Daniel Ervér on the first quarter of the year.