Hennes & Mauritz B
H & M Hennes & Mauritz AB is a Sweden-based global fashion retailer that designs, sources and sells clothing, accessories and related products under the H&M and portfolio brands. The group operates a large network of physical stores complemented by online channels, using a centralised buying and logistics model with regional subsidiaries for local retail operations and services. Production is outsourced to external suppliers, while group entities in Europe, Asia and the Americas handle merchandising, logistics, finance and support functions.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueMainline H&M clothing collections for women, men, teens and kids sold in stores and online.
Non-apparel products such as shoes, bags, jewellery and related fashion items.
Other H&M group fashion concepts and brands targeting specific customer niches.
Digital sales of H&M group products via websites and mobile applications.
Group-level logistics, finance, insurance and support services within the group.
Customers
H&M serves mass-market fashion consumers globally, targeting women, men, teenagers and children seeking affordable, trend-driven clothing and accessories. Customers buy primarily through H&M’s own stores and digital channels, valuing frequent new collections, accessible price points and broad size and style ranges. Portfolio brands address more specific style, quality or lifestyle preferences while still operating within the accessible fashion segment.
Purchase a wide range of women’s apparel and accessories, driving core store and online traffic.
Buy casual, work and occasion wear, contributing significantly to core apparel sales.
Seek fast-fashion trends and collaborations, supporting high product turnover and brand relevance.
Purchase childrenswear and basics, providing recurring, relatively stable demand.
Use e-commerce and apps for convenience and assortment, supporting omnichannel growth.
Targeted by specific H&M group concepts with differentiated style or quality positioning.
Strategy
H&M’s strategy centres on offering fashion and quality at accessible prices while expanding and refining its global store and online network. The group uses a centralised buying and design model, supported by regional logistics and sourcing hubs, to manage assortment, costs and speed to market. Portfolio brands and digital investments are used to broaden the customer base and deepen engagement across different style and price segments.
Customers increasingly expect seamless shopping experiences across channels, which can support sales and inventory efficiency.
Efficient supply chains are critical in fast fashion to manage lead times, costs and availability.
Additional concepts allow H&M to address more specific customer niches and price points.
Internal finance and insurance entities can improve risk management, funding flexibility and cost control.
Geography
H&M is headquartered in Stockholm, Sweden and operates through a global network of subsidiaries across Europe, Asia, the Americas and selected emerging markets. Retail operations are run locally (e.g., in Poland, Czech Republic, Italy, Portugal, Canada, Japan, Mainland China and various smaller markets), while sourcing and logistics are coordinated through entities in regions such as Hong Kong SAR and Shanghai. This structure allows centralised control of assortment and brand while adapting to local market conditions and regulatory environments.
Risks
H&M is exposed to typical global fashion retail risks, including demand volatility, fashion and inventory risk, and intense price competition. Its international supply chain and retail footprint create additional exposure to geopolitical events, trade interventions, currency movements, regulatory changes and tax risks. The group’s risk management focuses on monitoring global developments, managing financial and trade exposures, and maintaining business continuity in logistics and production.
- Geopolitical risk affecting supply chain and retail setupImpact: CriticalLikelihood: Medium
Conflicts, political unrest or global crises can disrupt production, logistics and store operations, raising costs or limiting availability.
Exposure: Sourcing and operations in multiple politically and economically diverse countries.
- Financial risk from exchange rate fluctuations, credit risk and liquidity riskImpact: HighLikelihood: Medium
Global sourcing and sales in multiple currencies expose margins and cash flow to FX movements and counterparties.
Exposure: Significant operations and sourcing outside Sweden with reporting in SEK.
- Trade interventions and tariff changesImpact: HighLikelihood: Medium
Changes in trade rules, tariffs or quotas can increase import costs or restrict sourcing and distribution.
Exposure: Extensive cross-border trade in textiles and finished garments.
- Tax risk from changing rules and increased reporting requirementsImpact: HighLikelihood: Medium
Operating through many subsidiaries and transfer pricing arrangements increases complexity and potential for disputes.
Exposure: Global group structure with finance and service entities in several jurisdictions.
- Fashion and inventory riskImpact: HighLikelihood: Medium
Misjudging trends or demand can lead to excess stock, markdowns and lower margins.
Exposure: Fast-fashion model with high product turnover and seasonal collections.
Accounting
Judgemental itemsSales are primarily point-in-time transactions, but returns, discounts and online timing can affect reported revenue and seasonality.
Impact: Influences quarterly revenue patterns and gross margin comparability.
The large store and logistics footprint creates significant right-of-use assets and lease liabilities, affecting EBITDA, operating profit and leverage metrics.
Impact: Shifts rental costs from operating expenses to depreciation and interest.
Use of hedges for currency and other exposures leads to movements in OCI and equity through the hedging reserve.
Impact: Can cause volatility in equity and comprehensive income separate from operating performance.
Extensive foreign subsidiaries generate translation differences that can materially move equity each year.
Impact: Affects reported equity and may obscure underlying operational trends.
Tax, legal and other contingent risks require judgement in recognition and disclosure.
Impact: Changes in estimates can impact profit and perceived risk profile.
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Last updated: 24/09/2026