Africa Digital Media Awards

Global site navigation

Local editions

H&M sales fall in second quarter on stronger currency
Economy

H&M sales fall in second quarter on stronger currency

by  AFP
2 min read
H&M noted that in local currencies its second quarter sales rose by one percent despite having fewer stores open
H&M noted that in local currencies its second quarter sales rose by one percent despite having fewer stores open. Photo: Gabriel BOUYS / AFP/File
Source: AFP

CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner

Swedish fashion giant H&M on Thursday reported a drop in sales and profit in the second quarter, as currency effects weighed on the company's earnings.

H&M said its net profit fell to 3.96 billion kronor ($419 million) for the period of March to May of 2025, down from 5.06 billion a year earlier.

"The quarter's result was negatively affected by higher purchasing prices as a result of a more expensive US dollar and higher freight costs, but also by the fact that we have continued to invest in the customer offering," H&M chief executive Daniel Erver said in a statement.

Erver noted that "negative external factors that increased the costs of purchasing for the first half of the year are turning positive for the second half of the year".

Net sales for the company fell nearly five percent to 56.7 billion kronor, compared to the second quarter of 2024.

But the company noted that net sales rose by one percent in local currencies "with four percent fewer stores at the end of the quarter compared with the same point in time the previous year."

PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!

In its quarterly earnings report it said net sales were hit by "a currency translation effect of around six percentage points due to the strengthened Swedish krona."

H&M also said its sales result in the second quarter should "be seen in light of the fact that the second quarter of 2024 was a strong quarter".

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: