H&M used its second-quarter 2026 earnings call to emphasize improving profitability while acknowledging that sales recovery remains incomplete. The operating margin reached 12% excluding one-time costs, and the gross margin rose 120 basis points to 56.6%, but revenues of $5.90 billion and earnings per share of $0.05 missed the consensus estimate. Management attributed the muted sales to weak Western European demand, logistics disruptions, and supply gaps, with June expected to be on par with last year. The company also outlined organizational changes, including removing a regional layer and eliminating the separate online sales organization, which incurred SEK 679 million in restructuring costs. Looking ahead, H&M plans to upgrade digital infrastructure and accelerate store improvements, while maintaining its full-year guidance for low single-digit SG&A growth in local currencies.
H & M Hennes & Mauritz AB (publ)Sales missed consensus due to weak Western European demand and logistics disruptions.