Q2 2026 H and M Hennes and Mauritz AB Earnings Call Transcript
Key Points
- H & M Hennes & Mauritz AB (HMRZF) reported a 12% profit margin for the second quarter, excluding one-time costs, indicating improved profitability.
- The company achieved a 2-percentage-point increase in operating margin on a 12-month rolling basis, reaching 8.5%, including one-time costs.
- Online sales continue to grow, with significant improvements in customer experience and navigation.
- The company has successfully reduced stock levels by 10%, improving stock efficiency.
- H & M Hennes & Mauritz AB (HMRZF) has strengthened its organizational setup by removing regional layers, aiming to move decision-making closer to customers for better relevance and speed.
- Sales performance was flat compared to last year, with a 3% reduction in store count due to ongoing store portfolio optimization.
- Western Europe experienced lower consumer confidence, affecting sales, and logistics network consolidation led to disturbances and lower availability.
- Portfolio Brands had a weak quarter due to the closure of Monki stores and a focus on full-price sales, impacting top-line performance.
- The company faced supply gaps in certain product types and markets, affecting sales.
- There are ongoing challenges with external factors such as tariffs and freight costs, which may impact future gross margins.
A warm welcome to everyone. Today, we present the second-quarter results for 2026 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 by sharing a short summary of our results. Our CFO, Adam Karlsson, will then provide a more detailed financial review.
And after that, Daniel will walk you through selected highlights from the quarter and provide a brief outlook. We will end with a Q&A session, where Daniel, Adam and I will be available to answer your questions.
And with that, please welcome Daniel.
Good morning, everyone, and a warm welcome to those of you who are joining us online, but also those who are joining us here in the room on this beautiful summer morning in Stockholm. Before we start, I just want to take the opportunity to recognize
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