H&M reports higher profits despite declining sales

The H&M Group continues to face competitive pressure. Striking the right balance between stricter inventory control and volatile consumer demand is also proving challenging. Nevertheless, the group has managed to improve its profit margins.

Better balance between supply and demand needed

In the first half of 2026, the H&M Group reported an operating profit of 8.1 billion Swedish kronor (739 million euros), an increase of 14% compared to the same period last year. This figure excludes the 679 million kronor (62 million euros) in one-time reorganization costs associated with recent restructuring efforts.