H & M Hennes & Mauritz AB (publ) Q1 2026 Earnings Recap

H&M's Q1 2026 results showed steady improvements in profitability despite a challenging retail environment, with an operating margin increase to 8.4% and positive sales trends in February and March.

Key Takeaways

• Gross margin improved to 50.7%, supported by enhanced inventory planning and cost control.
• Sales decreased 1% in local currencies, impacted by weaker December demand and currency translation effects of 9 percentage points.
• Improved inventory productivity reached the highest levels in a decade, contributing to reduced working capital.
• Launching a new flagship store in Stockholm and expanding into Latin America with new locations in Rio de Janeiro and Paraguay.
• Continued focus on sustainability with a 34.6% reduction in absolute Scope 3 emissions and 91% of materials sourced from recycled or sustainable origins.