Swedish fast-fashion retailer H&M (OM:HM B) closed 128 stores in its latest fiscal quarter. The move is part of a broader restructuring toward omnichannel growth.
The company now operates roughly 4,300 stores globally. This is down from over 5,000 five years ago.
H&M’s physical footprint is shrinking. Its digital investment is not.
Online sales now represent close to 30% of total revenue. The company has rolled out click-and-collect and ship-from-store in over 20 markets.
The closures are concentrated in underperforming markets. Europe and North America saw the most cuts.
H&M’s gross margin narrowed to 50.1% in the most recent quarter. Rising raw material and logistics costs are squeezing profitability.
On the product side, the retailer is betting on anti-trend apparel to drive summer demand. Who What Wear’s 2026 summer edit highlights nine “anti-trend buys” from H&M expected to sell out by August.
These items avoid seasonal gimmicks. They focus on classic silhouettes and neutral tones.
The strategy aims to reduce markdowns and improve sell-through rates. H&M’s inventory level is down 5% year-over-year.
Analysts remain cautious. The fashion retailer’s operating margin has not reached its 10% target since 2017. The stock trades at a price-to-earnings ratio of 17.5, a discount to Zara owner Inditex.
💡 Frequently Asked Questions (FAQ)
- Q: Why did H&M close 128 stores in one quarter?
- A: The closures are part of a broader restructuring toward omnichannel growth, concentrated in underperforming markets in Europe and North America.
- Q: How is H&M balancing physical store cuts with digital investment?
- A: Online sales now represent nearly 30% of total revenue, with click-and-collect and ship-from-store rolled out in over 20 markets.
- Q: What is H&M’s ‘anti-trend’ apparel strategy for summer 2026?
- A: H&M is focusing on classic silhouettes and neutral tones to reduce markdowns and improve sell-through rates, as highlighted in Who What Wear’s 2026 summer edit.
Extended Reading
| Metric | H&M (2024) | Inditex (2024) |
|---|---|---|
| Store Count | ~4,300 | ~5,600 |
| Online Sales Share | ~30% | ~25% |
| Operating Margin | 8.3% | 14.2% |
| Inventory Change (YoY) | -5% | -2% |
H&M is also testing a recommerce program in select European stores. The initiative allows customers to resell used H&M garments in exchange for store credit. No timeline has been set for a global rollout.
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