H&M Q2 sales up 1% in local currencies

H&M reported a 1% year-on-year increase in local currency sales for the second quarter ending May 31, 2025. Adjusted for a 4% reduction in store count, sales rose by 3%.

Net sales in Swedish krona totalled SEK 56.714 billion (approximately €5.1 billion), down from SEK 59.605 billion a year earlier, impacted by a negative currency effect of around 6 percentage points due to the stronger Swedish krona.

Gross profit reached SEK 31.425 billion, compared to SEK 33.569 billion in Q2 2024, resulting in a gross margin of 55.4% (down from 56.3%). Net income stood at SEK 3.962 billion, versus SEK 5.064 billion last year.

The company said inventory composition was “good,” with a notably improved stock trend. Inventory growth in local currency slowed to just 1% from 11% in Q1. At quarter-end, inventory volumes were lower than a year ago, though the value increase reflects higher purchasing costs.

H&M expects group sales in June 2025 to rise by 3% in local currencies compared to the same month last year.

“Our focus on product, customer experience, and brand continues to deliver results,” said CEO Daniel Erver. “Positive developments in key areas like online, H&M womenswear, and H&M Move, combined with ongoing cost discipline, will support profitable sales growth.”