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In the reporting period, which ended on February 28, the group’s turnover decreased by 1% year-on-year, WWD writes. One of the key reasons was the optimization of the network: over the past 12 months, the number of stores decreased by about 4%, or 163 points. A significant part of the closures is related to the revision of the strategy of the Monki brand, from the physical stores of which the company decided to abandon completely.
During 2026, H&M plans to close about 160 more stores, while expanding its presence in promising locations. In particular, the retailer intends to open around 80 new locations, including debuts in Paraguay and Malta. In addition, the company resumed online sales in Ukraine in the first quarter.
Despite the decline in revenue, financials remain stable. Net revenues amounted to about $5.3 bln, while operating profit amounted to about $200 mln. The company managed to maintain profitability due to tight cost control, more efficient inventory management and revised marketing strategy.
Regional dynamics proved to be uneven. In the Americas, sales declined by 3% in local currencies, reflecting increased competition in the mid-price segment. At the same time, the US market performed above the company’s expectations.
H&M continues to invest in store modernization, including upgrading interiors, improving visual merchandising and introducing digital solutions. The online channel is playing an increasingly important role and already accounts for over 30% of total sales. At the same time, the company is optimizing advertising expenditures, focusing on the quality of content and reallocating resources to the development of key business areas.
