H&M Reports 53% Drop in Q1 Net Profit as Sales Miss Expectations

The Swedish retailer cites inflation, markdowns, and competition as key challenges, with March sales showing only 1% growth.

H&M's Q1 2025 net profit fell 53% year-on-year to 579 million Swedish kronor, significantly below analyst forecasts.
Sales for the quarter rose 2% in local currencies to 55.33 billion Swedish kronor, missing expectations of 55.9 billion.
Operating profit margin narrowed to 2.2%, down from 3.9% in the same period last year, impacted by increased discounting and marketing investments.
March 2025 sales grew by just 1%, highlighting a slow start to the spring/summer season and ongoing consumer demand challenges.
CEO Daniel Ervér emphasized H&M's focus on long-term growth through product improvements, brand strengthening, and operational efficiency.