H&M’s profits rise despite disappointing sales

Swedish fast-fashion giant H&M Group reported higher-than-expected operating profit in the first quarter of its 2026 fiscal year. However, the group ended the quarter with a slight decline in revenue.

Sales recover after a weak December

H&M saw sales in local currency decline by 1% to 49.6 billion Swedish kronor (4.58 billion euros) in the first three months of the fiscal year, which runs from December through February. The weak start was mainly due to disappointing December sales, following a strong Black Friday period in late November.