Its flagship H&M brand accounts for most of the revenue, but the newer brands (COS, &Other Stories, Monki, Weekday, and Arket) are growing a bit faster. Around 66% of revenue is generated in Europe and Africa, 12% in Asia and Oceania, and 22% in North and South America. The retailer achieved its long-held goal of hitting an operating profit margin of over 10% through tight cost controls and upgraded collections (January 2026).
Cyborg Score Rationale
H&M delivered TTM revenue of $23.402B as of February 28, 2026, representing a 5.51% year-over-year increase. The company achieved its operating profit margin target of over 10% (January 2026). However, sales in local currencies decreased by 1 percent in Q1 2026, with store count around 4 percent lower than the prior year.
Top Insights
Growth is set to slow after H&M beat profit expectations for a third consecutive quarter (January 2026).
Good cost control and improved gross margin contributed to strengthened profitability in Q1 2026 despite cautious consumption and large currency translation effects.
Newer brands including COS, &Other Stories, Monki, Weekday, and Arket are growing faster than the flagship H&M brand.
H&M is expanding through stores and digital channels, mostly in growth markets including Brazil and other parts of Latin America.
Named Competitors
Zara — Fast-fashion competitor with global store network
Adidas — Sportswear and apparel competitor
Primark — Value-oriented fashion retailer with strong UK presence
Recent Developments
(March 2026) Q1 2026 showed improved profitability from cost control and margin gains, though local currency sales declined 1% and store count fell 4% year-over-year.
(January 2026) Operating profit of 6.36 billion kronor exceeded expectations; company achieved long-held operating margin target of over 10%.
(May 2026) Annual general meeting scheduled for May 5, 2026, with board proposing dividend of SEK 7.10 per share.
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