H&M Group profit dips in first half 2025
Swedish fashion group H&M saw higher freight costs, unfavourable exchange rates and increased markdowns impact its first half (H1) of the 2025 financial year (FY25), resulting in decreased operating profit and profit after tax.
In a financial update, H&M Group reported an operating profit of seven billion Swedish krona. This represents a decrease of over two billion Swedish krona compared to the previous financial year.
Profit after tax saw a similar decline of approximately two billion Swedish krona, resulting in a profit of 4.5 billion Swedish krona for H1 FY25. Stronger dollar and increased freight costs impact Q2 results
Commenting on the second quarter (Q2) results, H&M Group chief executive officer Daniel Ervér said: 'The quarterly results were negatively affected by higher purchasing prices due to a stronger dollar and increased freight costs, but also by continued investments in our customer offering. Investments were made to strengthen our customer offering and give customers even more value for their money.'
Group sales remained stable during the period, reaching 112 billion Swedish krona, thanks to 1 percent growth.
H&M Group is the parent company of brands H&M, Arket, &OtherStories, Cos, Weekday, Cheap Monday, Sellpy and Singular Society. The group has over 4,000 stores in 79 markets and an online presence in 60 markets. This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
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