H&M's first-quarter profit growth exceeded expectations, with sales expected to increase by 1% in March.

MaticHoleFiller · 2026-03-28T00:56:28+00:00

Swedish fashion retailer H&M announced that its operating profit from December to February exceeded expectations, with an expected sales growth of 1% in March. Although organic sales declined by 1% during the same period, the company remains optimistic about spring collection sales. Meanwhile, H&M is monitoring the impact of the situation in the Middle East on global trade and stated that it will adjust its supply chain strategy accordingly based on the developments.

MaticHoleFiller

2026-03-28 00:56:28

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Swedish fashion retailer H&M announced on Thursday that its operating profit for the period from December to February slightly exceeded expectations, and it anticipates a 1% increase in sales for March when calculated in local currency.

The company’s CEO, Daniel Ek, stated in a press release: “At the end of this quarter, our spring collection, which has been well received in the market, has driven sales in a positive direction, and this trend continues into March.”

In the first quarter of H&M’s fiscal year (which includes the important Christmas shopping season), operating profit increased for the third consecutive quarter, rising from 12.0 billion Swedish kronor in the same period last year to 15.1 billion Swedish kronor (approximately $1.62 billion), surpassing the average expectation of 13.9 billion Swedish kronor from a Reuters analyst survey; during the same period, organic sales fell by 1%.

As a competitor to Inditex, H&M stated in January that sales in the first two months of this quarter decreased by 2% when calculated in local currency.

H&M is closely monitoring the developments in the Middle East and their impact on global trade.

The company stated: “With our supply chain having good flexibility and a low proportion of air freight, we have the opportunity to adjust the pace of goods distribution according to changes in the situation. The Middle Eastern market accounts for a small percentage of the company’s total sales, and that region is operated through franchising partners.”

On February 28, the US and Israel launched a joint strike against Iran. Iran subsequently retaliated against Israel, US military bases, and Gulf countries.

Iran attacked multiple ships and infrastructure in the Gulf region and effectively blocked the Strait of Hormuz, impacting global supply chains and causing energy costs to surge, raising market concerns about inflation triggered by war and its potential effects on consumer demand.

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