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.