H&M sees stronger stronger summer trading, shares spark
By Abigail Townsend
Date: Thursday 26 Jun 2025
(Sharecast News) - Swedish fashion giant H&M posted an uptick in early summer sales on Thursday, sending shares in the retailer higher.
The retail sector is currently facing a raft of headwinds, including higher costs, global tariffs and more uncertain consumers.
At H&M, which owns Cos, Monki and & Other Stories, among others, sales rose by just 1% in the second quarter, and fell when converted into Swedish krona.
However, H&M said demand had picked up since the half-year end, with June sales on track to rise 3% in local currencies.
As at 0930 BST, the Stockholm-listed stock was trading 7% higher.
H&M said first half profits had been hit by a more expensive US dollar, higher freight costs and ongoing investments to strengthen the customer offering.
In the six months to 31 May, operating profits fell to SEK 7.1bn from SEK 9.2bn while net sales rose 1%. However, when converted to krona, sales fell to SEK 112bn from SEK 113.3bn.
The second quarter, sales were also lower once converted, at SEK 56.7bn, which was below forecasts for SEK 57.0bn. But operating profits of SEK 5.91bn beat expectations for SEK 5.88bn.
Looking to the full year, H&M said that the negative external factors that had increased the cost of purchasing in the first half were "turning positive" for the second half.
Daniel Erver, chief executive, said: "Our plan, with its focus on the product offering, the shopping experience and brand, is again confirmed by the progress we see.
"The positive development in important areas such as online, H&M womenswear and H&M Move, as well as continued focus on good cost control, will contribute to a profitable sales development."
Speaking to reporters, Erver said collections were now "more current, they are more on trend, more fashionable, and the customer reception has been strong throughout this quarter".
Founded in 1947, H&M is the world's second largest listed fashion retailer, after Spain's Inditex, which owns Zara. It currently has around 4,000 stores in more than 75 markets.
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