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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

H&M Q2 2025 Earnings: Profit Margins Improve Amid Sales Decline

H&M logo with smiling shoppers and bright fashion displays.

H&M, the Swedish fashion retailer, reported its second-quarter 2025 earnings on June 26, showcasing a notable improvement in profitability despite a decline in sales.

Financial Highlights

  • Operating Profit: SEK 5.91 billion, exceeding analyst expectations of SEK 5.88 billion.
  • Operating Margin: Improved to 10.4% from 8.2% in the same period last year.
  • Net Sales: Decreased by 4.8% year-over-year to SEK 56.7 billion, slightly below the anticipated SEK 57.0 billion.

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The company's focus on profitability over sales growth appears to be yielding results, with improved margins reflecting effective cost management and strategic pricing.

Strategic Initiatives and Market Response

CEO Daniel Ervér emphasized the company's commitment to enhancing its fashion offerings and maintaining competitive pricing to appeal to cost-conscious consumers. The updated collections have been well-received, contributing to the improved operating margin.

Despite the sales decline, H&M's stock experienced a positive response, with shares rising 7.5% in early trading following the earnings announcement.

Outlook

Looking ahead, H&M anticipates a 3% year-over-year increase in June sales, signaling potential stabilization in consumer demand. The company plans to expand into emerging markets, including Brazil, El Salvador, Venezuela, and Paraguay, while continuing to optimize its store portfolio globally.

Past performance does not guarantee or predict future performance. This article is offered for general information purposes only and does not constitute investment advice.

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