Overview
- Investors sold the stock after H&M guided March sales growth to about 1% in constant currency, below expectations near 1.8%, sending shares down as much as 6.6%.
- For the quarter through February, sales were SEK 49.6 billion, down 10% in Swedish krona or 1% in local currencies, while operating profit rose 26% to SEK 1.51 billion and gross margin reached 50.7%.
- The group operated 163 fewer stores than a year earlier and plans roughly 160 more closures in 2026 with about 80 openings, including new entries in Brazil, Paraguay and Malta.
- Inventory levels declined versus last year and the CEO said direct exposure to the Middle East is small, though a prolonged conflict could lift energy costs and further strain consumers.
- Analysts frame the pivot toward higher‑margin labels like COS and Arket as necessary in a market where Zara owner Inditex is growing and ultra‑fast rivals such as Shein and Temu pressure prices and speed.