The latest annual report for the period December 1, 2024 to November 30, 2025 shows that sales continued to increase in all markets. Turnover rose by 27 percent to 2 billion Swedish kronor, compared to 1.6 billion Swedish kronor during the previous year.
However, rapid growth has come at a price. Operating profit fell to -165.5 million Swedish kronor, compared to -79 million Swedish kronor the year before. This means that the operating loss increased by over 100 percent.
Picking towers and new subsidiaries in Europe
During the past year, the second-hand group was forced to handle the Swedish Consumer Agency's review of sorted clothing and unclear terms and conditions. The solution included updating the terms regarding the right of withdrawal and installing cameras in the sorting process to provide sellers with photographic evidence.
In parallel with the regulatory work, the company has focused on streamlining operations in the facilities. At the logistics center in Rosersberg, a new picking tower with shelves was installed to speed up the handling of goods.
The company has also expanded its presence in Europe by forming two new wholly-owned subsidiaries, one in Poland and one in Romania.
H&M lends millions for automation
To finance the expansion of warehouse space and investments in automation solutions, the owners have had to contribute new capital. In December 2024, the company took out a loan of 50 million Swedish kronor from the parent company H&M Fashion AB.
In addition, a previous credit within the group was converted into a long-term loan of 94.9 million Swedish kronor. Finances have also been strengthened through several new issues during the year.
Looking ahead with new technology and external partners
Despite the negative result, management is optimistic about the future and believes that the demand for second-hand goods will continue to increase. To capitalize on the growing interest, the e-commerce retailer has recently shifted its focus to lowering the barriers to purchase.
In the spring of 2026, a new image search function with AI was introduced, allowing customers to upload their own images in the app to find similar items in the range. Shortly thereafter, a collaboration with British Beyond Retro was rolled out, meaning that the platform was opened up to an external player for the first time with selected vintage items.