Q4 2025 H & M Hennes & Mauritz AB Earnings Call Transcript
Key Points
- Sales increased by 2% in local currencies for both the fourth quarter and the full year 2025, indicating a stable underlying trend.
- Operating profit increased by 38% in the fourth quarter, with an operating margin of 10.7%, showing significant profitability improvement.
- Inventory productivity improved, with stock in trade relative to sales decreasing from 17.2% to 15.5%, reflecting better demand planning and stock management.
- H & M Hennes & Mauritz AB (HMRZF) reduced CO2 emissions in scope 3 by 30% compared to 2019, aligning with their long-term sustainability targets.
- The company successfully launched the H&M brand in Brazil and opened new stores in key locations like Athens, Los Angeles, and Shanghai, expanding their global presence.
- The appreciation of the Swedish crown negatively affected reported numbers, with a currency translation effect of 7% during Q4.
- The company faces increased cost pressure in 2026 due to tariffs and the implementation of new tech infrastructure.
- Weak consumer sentiment in European markets could drive a need for increased temporary promotions and deals.
- The US market showed sluggish performance in Q4 due to stock availability issues, impacting sales.
- Despite improvements, the brand perception is not yet where the company wants it to be, indicating ongoing challenges in brand positioning.
And a warm welcome, everyone. Today we present the fourth quarter and the full year results for 2025 for the H&M Group. My name is Joseph Ahlberg, and I'm Head of Investor Relations.
Before I hand over to our CEO, Daniel Erver, let me briefly outline today's agenda. As per usual, Daniel will start with a high-level overview of the quarter and the full year.
This will be followed by a more detailed financial review from our CFO, Adam Karlsson. Daniel will then highlight strategic progress, priorities going forward, and Adam will share a financial outlook.
We will close the conference with a Q&A session where Daniel, Adam, and I will be available to answer your questions. So with that, please welcome Daniel.
Good morning everyone, both those of you joining us here and those of you joining us online.
Today I'm concluding my 2nd year as CEO of the H&M Group,
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