Fashion retailer H&M has recorded flat sales but says spring is contributing to a “positive sales trend”.

Sales amounted to SEK 49,607m (£39,72m) in the first quarter from December 1, 2025, to February 28, 2026, declining 1% in local currencies.

Net sales in Swedish Krona were “negatively affected” by a currency translation, and 4% fewer stores in this quarter likely contributed to a slight dip in sales.

Gross profit reached SEK 25,138 m (£20,13m) while operating profit increased 26%.

H&M said its group sales in March 2026 are expected to rise 1% compared to the same period last year, and there is a “positive sales trend” continuing. 

H&M chief executive Daniel Ervér said: “The quarter began in December with weaker demand following strong Black Friday trading in November. Towards the end of the quarter, our well-received spring collections contributed to a positive sales trend, which also continued into March.

“Through continued good cost control, greater efficiency in our product purchasing, and external factors that positively affected purchasing costs, we strengthened both the gross margin and the operating margin compared with the same quarter last year. The results of this can also be seen over the past 12 months, as the operating margin has improved by 1.4 percentage points to 8.4 percent.

“We are continuing to develop the customer offering with a focus on product, experience, and brand to strengthen the foundation for profitable and sustainable growth. Inventory efficiency was improved further during the quarter, and the stock-in-trade situation is good. 

“Shorter decision paths mean we can act faster; combined with deeper collaboration with our suppliers, this increases our opportunities to purchase a higher share of the assortment in season and thus create an even more relevant offering. We are also continuing to implement improvements in our physical stores within areas such as tech, layout, and presentation.

“In a still challenging macroeconomic environment marked by increased geopolitical uncertainty, flexibility is more important than ever. With the customer in focus, short decision paths and good cost control, we can adapt to a rapidly changing environment and continue to offer our customers relevant fashion with the best possible value for money.

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