H&M
Hennes & Mauritz AB, trading as H&M and part of the H&M Group, is a Swedish multinational fast-fashion retailer founded in 1947 by Erling Persson in Västerås as Hennes, initially focusing on women's clothing.[1][2] In 1968, the company acquired the hunting and fishing equipment retailer Mauritz Widforss, adding men's apparel and adopting the H&M moniker, which has since expanded to encompass a broad range of affordable, trend-responsive fashion for all demographics under multiple brands including COS, & Other Stories, and Weekday.[1] Headquartered in Stockholm, H&M Group operates over 4,000 physical stores across more than 79 markets and maintains e-commerce in 60, emphasizing rapid production cycles to deliver low-cost apparel, accessories, and home goods.[3] For fiscal year 2024, the group achieved net sales of SEK 234.5 billion, reflecting modest growth amid competitive pressures in the global apparel sector.[4] While pioneering accessible fashion and reporting progress toward sustainability targets—such as 89% of materials being recycled or sustainably sourced in 2024—H&M has encountered persistent allegations of labor abuses in supplier factories, including poverty wages and rights violations in regions like Myanmar and South Asia, prompting operational adjustments and investigations.[5][6][7][8]
Founding and Historical Development
Origins in Sweden and Initial Growth
Hennes, the predecessor to H&M, was founded on October 4, 1947, by Swedish entrepreneur Erling Persson in Västerås, Sweden, as a women's clothing retailer.[9] [1] Persson, inspired by ready-to-wear fashion trends observed during a 1946 trip to New York City, named the store "Hennes," Swedish for "hers," and stocked it exclusively with women's apparel sourced from independent manufacturers.[1] [10] The initial store emphasized affordable, trend-driven garments, departing from Sweden's prevailing custom-tailoring norms, and quickly gained traction in a post-World War II market seeking accessible fashion.[2] By 1952, Hennes expanded to Stockholm, marking its second store and signaling early domestic growth amid rising consumer demand for mass-market clothing.[11] Throughout the 1950s and early 1960s, the chain methodically added outlets across Sweden, leveraging Persson's prior experience as a salesman and founder of the hunting gear firm Pennspecialisten to refine merchandising and supply strategies.[10] This period solidified Hennes' position as a leading Swedish womenswear provider, with stores focusing on high-volume sales of seasonally refreshed inventory to capture fleeting styles.[12] A pivotal shift occurred in 1968 when Persson acquired the Stockholm-based hunting and fishing retailer Mauritz Widforss, integrating its inventory and premises to introduce men's and children's clothing lines.[1] [13] The company rebranded as Hennes & Mauritz (H&M), broadening its appeal to family-oriented shoppers and accelerating initial expansion by repurposing the acquired assets for broader apparel categories.[14] This move addressed untapped market segments in Sweden, where H&M stores proliferated in urban centers, laying the groundwork for scaled operations while maintaining a commitment to low-cost, high-turnover fashion.[15]Expansion into Europe and Beyond
H&M initiated its expansion beyond Sweden with the opening of its first store in Norway in 1964.[1] This move was followed by entry into Denmark in 1967, establishing a foothold in the Nordic region outside its home market.[16] Further penetration into Western Europe occurred in 1976 with the opening of the first store in the United Kingdom.[17] During the 1980s, H&M extended operations to Germany, where it opened its initial store in 1980, and the Netherlands, laying groundwork for broader continental presence.[18][1] By the late 1990s, the company had entered France with a store in Paris in 1998 and Spain in 1999, contributing to sustained growth across Europe amid increasing store counts and market adaptations.[1][10] The transition to non-European markets began in 2000, when H&M opened its flagship store on Fifth Avenue in New York City on March 31, realizing founder Erling Persson's vision for U.S. entry and marking the brand's first major transatlantic expansion.[19] This was followed by forays into the Middle East via a franchise store in the United Arab Emirates in 2006.[20] In 2007, H&M advanced into Asia with openings in Hong Kong and Shanghai, China, signaling accelerated global ambitions.[1] Subsequent developments included entry into Japan in 2008 and Chile as the first southern hemisphere market, alongside ongoing additions in Eastern Europe, South America, and Africa.[11] By August 2025, these efforts had resulted in physical stores across 79 markets and e-commerce in 61, reflecting a strategy emphasizing both owned operations and selective franchising in diverse regions.[21]Key Milestones and Challenges (2000s-2025)
In 2000, H&M expanded into the United States by opening a flagship store on Fifth Avenue in New York City, marking its entry into the Americas market.[1] This was followed by rapid growth, with the company operating nearly 1,000 stores worldwide and employing 41,000 people by 2002.[22] In 2004, H&M initiated its designer collaboration program with Karl Lagerfeld, launching limited-edition collections that made high-end design accessible at affordable prices and setting a template for future partnerships with figures like Stella McCartney (2005) and Alexander Wang (2014).[1] [23] The mid-2000s saw further international push, including first stores in Shanghai and Hong Kong in 2007, alongside the launch of the COS brand targeting premium minimalist fashion.[1] In 2008, H&M acquired FaBric Scandinavien AB, incorporating youth-oriented brands Weekday, Monki, and Cheap Monday into its portfolio.[1] The company published its inaugural Corporate Social Responsibility report in 2002, but faced mounting scrutiny over supply chain labor conditions, particularly in Asia, where reports highlighted inadequate wages and unsafe factories despite early audits.[1] By 2009, H&M introduced its home goods line, H&M Home, amid CEO transition to Karl-Johan Persson, who oversaw continued store proliferation but also initial e-commerce delays in key markets like the US until 2013.[1] [24] The 2010s brought diversified brand launches, including & Other Stories in 2013 for elevated womenswear, H&M Studio at Paris Fashion Week for ready-to-wear, and the H&M Foundation with garment recycling initiatives to address textile waste.[1] The 2013 Rana Plaza factory collapse in Bangladesh, which killed over 1,100 workers, intensified global pressure on fast fashion; H&M signed the Accord on Fire and Building Safety, committing to factory inspections and remediation, though critics noted persistent gaps in enforcement and ongoing violations in supplier facilities.[25] [26] ARKET debuted in 2017 as a sustainable lifestyle brand, followed by Afound in 2018 for off-price retail.[1] Sustainability efforts expanded with the 2015 Global Change Award for innovation and H&M Beauty, but accusations of greenwashing emerged, including a 2023 exposé revealing limited actual recycling from its "Close the Loop" program despite collecting 18,800 tons of garments annually.[1] [27] The COVID-19 pandemic in 2020 severely disrupted operations, with net sales declining 18% for the fiscal year to SEK 182.5 billion due to store closures and reduced foot traffic, prompting accelerated e-commerce adoption and plans to shutter hundreds of physical locations.[28] [29] Leadership shifted with Helena Helmersson becoming CEO, focusing on cost controls amid inventory overhangs and competition from agile rivals like Shein.[1] By 2022, H&M set ambitious climate goals, targeting a 56% emissions reduction by 2030, and launched H&M Move for activewear.[1] A 2023 joint venture, Looper Textile Co., aimed to enhance circularity through industrial recycling.[1] In January 2024, Daniel Ervér succeeded Helmersson as CEO amid slumping sales and stock declines, inheriting challenges like excess inventory and margin pressures from fast fashion oversupply.[30] [31] Turnaround efforts yielded results, with Q3 2025 operating profit surging to exceed expectations through improved margins and expense reductions, alongside Cheap Monday's relaunch under Weekday.[32] [1] However, ongoing controversies persisted, including a 2025 class-action lawsuit alleging misleading sustainability claims and ethical lapses like labor abuses in Myanmar suppliers.[33] [34] Despite these, trailing twelve-month revenue reached €19.6 billion by October 2025, reflecting resilience in a consolidating retail landscape.[35]Business Model and Core Operations
Fast Fashion Principles and Supply Chain Efficiency
H&M employs a fast fashion model characterized by rapid trend identification, in-house design, and frequent collection refreshes to deliver affordable apparel, with new styles introduced weekly to align with consumer preferences and minimize inventory obsolescence.[36][37] This approach prioritizes short product life cycles, enabling the company to respond to market signals through style flexibility and quick production scaling, though it relies more on forecasted volumes than real-time sales data compared to vertically integrated rivals.[38][39] The supply chain emphasizes outsourced manufacturing to achieve cost efficiencies, with no owned factories; production is handled by over 570 suppliers across more than 1,100 tier-1 factories, predominantly in low-wage regions like Asia, allowing H&M to leverage economies of scale without heavy capital investment in production assets.[40][41] Supply chains vary in structure, including short vertical tiers for select items and longer horizontal ones spanning multiple subcontractors for raw materials and components, which supports volume-driven pricing but introduces complexities in oversight and lead time variability.[40] Efficiency gains stem from integrated IT systems for supplier coordination, demand forecasting, and logistics, complemented by in-house distribution networks that streamline global transport and reduce bottlenecks.[42][43] Average lead times from design to retail hover around 21 days for standard items—longer than Zara's 14 days due to geographic dispersion of suppliers—but H&M has shortened them by 15-20% via process refinements like optimized sourcing and transport protocols.[44][45][46] These elements collectively enable high turnover rates and low margins, underpinning H&M's strategy of volume over exclusivity.[47]Sourcing, Manufacturing, and Outsourcing Practices
H&M Group relies exclusively on an outsourced manufacturing model, contracting independent suppliers for production rather than maintaining owned factories, which enables rapid scaling and cost efficiency in line with fast fashion demands.[40] This approach involves over 570 commercial product suppliers operating more than 1,100 tier 1 factories, predominantly in Asia (including Bangladesh, China, India, and Vietnam), Europe (such as Turkey), and select other regions as of 2024.[40][48] The company publishes detailed supplier lists biannually, mapping facilities since 2013 to facilitate due diligence on risks like forced labor.[49] Raw materials sourcing centers on textiles like cotton, which constitutes a major cost input, with H&M targeting 100% recycled or sustainably sourced materials across all products by 2030 and 30% recycled by 2025.[50][51] In fiscal year 2024 (ending November 30), 89% of materials used were recycled or sustainably sourced, up from 83% in 2023, incorporating organic cotton, recycled polyester, and alternatives like seaweed-based fibers through partnerships.[52][53] H&M enforces a supplier code of conduct mandating compliance with labor standards, environmental regulations, and ethical sourcing, supplemented by third-party audits and initiatives like collaborative financing for supplier sustainability upgrades.[54][55] Despite these measures, supplier factories have faced documented controversies over labor conditions. In 2025, investigations in Indian facilities revealed that all 50 interviewed female workers reported pregnancy-related dismissals, alongside verbal abuse and inadequate facilities.[56] Earlier reports from 2018 highlighted sexual harassment, physical abuse, and gender-based violence in Asian suppliers, with groups like the Asia Floor Wage Alliance alleging persistent failures in remediation.[57][58] In Bangladesh, workers' rights organizations claimed hundreds of thousands labored in unsafe conditions as recently as 2023, prompting H&M to emphasize audits while critics questioned enforcement efficacy.[59] H&M phased out Myanmar operations in 2023 amid rising post-coup allegations of abuses, including military-linked extortion, though the company maintained its commitments to affected workers.[60][61] These issues reflect broader fast fashion pressures for low costs, which independent monitors attribute to insufficient leverage over distant suppliers despite H&M's stated priorities on human rights.[54][62]Retail Channels, E-commerce, and Digital Innovations
H&M operates a network of approximately 4,100 physical stores across more than 79 markets worldwide as of mid-2025, reflecting a strategic optimization of its retail footprint that includes closures of underperforming locations to counter post-2019 declines.[63] The company maintains flagship stores in key urban centers and shopping malls, emphasizing prime locations to drive foot traffic and integrate with broader omnichannel strategies.[64] Physical retail remains central to H&M's model, with ongoing investments in store refreshes and automation to enhance efficiency, such as energy-saving technologies deployed in over 90 European outlets in 2025.[65] E-commerce constitutes a growing pillar, available in 60 markets and accounting for about 30% of total sales in the third quarter of 2024, underscoring a shift toward digital channels amid varying regional consumer preferences.[66][3] Online platforms like hm.com generated significant revenue, with unified inventory systems enabling seamless fulfillment from stores to support buy-online-pickup-in-store options and faster delivery.[21] This channel's expansion has been prioritized through improved user interfaces and localized offerings, contributing to net sales stability despite physical store reductions.[4] Digital innovations focus on AI-driven enhancements to bridge physical and online experiences, including data analytics for personalized recommendations and inventory management to reduce overstock risks inherent in fast fashion cycles.[67] H&M employs AI in stores for operational upgrades, such as predictive stocking and customer flow optimization, positioning physical locations as tech-enabled hubs against pure-play online competitors.[68] Additional technologies like big data, cloud computing, and augmented reality support virtual try-ons and immersive shopping, with 2024 investments emphasizing hybrid retail models over standalone digital pivots.[69] These efforts align with causal efficiencies in supply-demand matching, though outcomes depend on execution amid competitive pressures from low-cost e-tailers.[70]Brands, Products, and Collaborations
The H&M Core Brand and Product Categories
The H&M core brand serves as the flagship offering of H&M Group, focusing on accessible, trend-responsive fast fashion apparel and related products designed for mass-market consumers across demographics including women, men, teenagers, children, and infants.[71] Launched originally as women's clothing in 1947 and expanded to include menswear by 1968, the brand emphasizes seasonal collections that blend casual, professional, and occasion-specific styles at low price points, typically ranging from $5 to $50 per item.[72] Key apparel categories encompass tops (including t-shirts, blouses, shirts, sweaters, and hoodies), bottoms (jeans, pants, skirts, and shorts), dresses, outerwear (jackets, coats, and blazers), lingerie, swimwear, and activewear.[73] For women and men, subcategories target versatile everyday wear alongside trendier pieces like party outfits and streetwear, with dedicated plus-size and maternity lines broadening accessibility.[74] Children's offerings mirror adult categories but scaled for infants, toddlers, kids, and teens, prioritizing durable, playful designs in basics and seasonal trends. Accessories form a supporting pillar, including bags, jewelry, belts, hats, scarves, and eyewear, often coordinated with clothing for complete looks. Footwear spans casual sneakers, boots, heels, and sandals, emphasizing affordability and style alignment with apparel.[73] Beyond fashion, the core brand extends to H&M Home, which provides textiles (bedding, towels, curtains), tableware, storage solutions, and small decorative items for interior styling, launched in 2009 to diversify into lifestyle products.[73] H&M Beauty includes cosmetics, skincare, and hair accessories, though its prominence has fluctuated by region and is less central than apparel. Sustainability initiatives, such as the Conscious Collection utilizing organic cotton, recycled materials, and lower-impact dyes, are embedded across categories to address environmental critiques without altering the core fast-fashion model.[72] These categories collectively drive the brand's volume-driven strategy, with apparel comprising over 90% of sales volume as of recent fiscal reports.[74]Subsidiary and Concept Brands
H&M Group operates a portfolio of concept brands distinct from its core H&M label, each targeting specific demographics, styles, and price points to diversify its market reach. These brands emphasize varied aesthetics, from minimalist luxury to youth-oriented streetwear, while sharing the group's supply chain efficiencies and sustainability goals. As of 2025, active concept brands include COS, & Other Stories, Arket, and Weekday, with the latter incorporating elements of Cheap Monday and the former Monki brand following store closures.[71] COS, launched in March 2007 with its first store on London's Regent Street, positions itself as an upscale, minimalist fashion line offering high-quality clothing and accessories for men and women.[75][76] The brand focuses on architectural silhouettes, neutral palettes, and premium fabrics, appealing to urban professionals seeking refined, timeless pieces at accessible prices higher than H&M's core offerings. By 2025, COS operates over 260 stores across 48 markets, emphasizing global online sales in addition to physical retail.[77] & Other Stories, introduced in March 2013 with initial stores in London, Berlin, and Copenhagen alongside an online launch in ten European markets, curates eclectic, story-driven collections of ready-to-wear apparel, footwear, accessories, and beauty products.[78][79] Targeting creative women with a bohemian-chic sensibility, it collaborates with independent designers and emphasizes artisanal details, bridging fast fashion speed with elevated craftsmanship. The brand expanded to the U.S. in 2015 and maintains around 70 stores worldwide as of 2025, with strong e-commerce presence.[80] Arket, debuting in August 2017 on London's Regent Street with simultaneous online availability in 18 European markets, functions as a lifestyle brand promoting sustainable, functional minimalism across clothing, accessories, and home goods.[81][82] It prioritizes durable, versatile items made from responsibly sourced materials, appealing to environmentally conscious consumers valuing quality over trends. Arket's stores feature cafe spaces to foster community, and by 2025, it has grown to dozens of locations primarily in Europe, supplemented by global digital sales.[83] Weekday, originating in 2002 as a Swedish denim specialist influenced by street culture and acquired by H&M Group to bolster its youth segment, specializes in casual, trend-driven apparel with a focus on jeans, graphics, and urban basics.[84][85] It relaunched Cheap Monday—a skull-logoed sub-label started in 2004 for edgy, affordable denim—under its umbrella in recent years, while integrating Monki's playful, youthful designs digitally after closing all approximately 60 Monki stores in 2025 to streamline operations.[1][86] Weekday now serves as a multi-brand platform for Gen Z, offering curated selections via evolving online and select physical outlets, with emphasis on cultural relevance and sustainability.[87] Other initiatives, such as the membership-based Singular Society launched in 2020, provide direct-to-consumer essentials at production cost to promote transparency and affordability in premium goods, though it operates more as a business venture than a traditional retail concept.[88] The digital outlet Afound, which discounted H&M Group collections, was discontinued in late 2024 due to insufficient demand.[89] These brands collectively contribute to H&M Group's strategy of segmenting the fashion market while leveraging shared logistics for cost control.[71]Designer Partnerships and Limited Editions
H&M launched its guest designer collaboration initiative in November 2004 with Karl Lagerfeld, then creative director at Chanel, producing a capsule collection of womenswear and menswear priced accessibly to appeal to a broad audience.[90] This marked the first of many limited-edition partnerships aimed at infusing fast fashion with luxury aesthetics, often resulting in rapid sell-outs and queues outside stores.[91] Subsequent collaborations followed annually or biennially, featuring prominent designers and expanding into accessories and childrenswear. In November 2005, Stella McCartney contributed eco-conscious pieces emphasizing sustainable materials.[92] Viktor & Rolf partnered in November 2006 for avant-garde couture-inspired items, while Roberto Cavalli's 2007 collection introduced bold prints and animal motifs.[92] Comme des Garçons collaborated in 2008, delivering asymmetric and conceptual designs under Rei Kawakubo's direction.[93] The program diversified in the late 2000s and 2010s, with Jimmy Choo focusing on footwear and handbags in 2009, and Sonia Rykiel on lingerie in 2010.[94] Versace's 2011 line brought baroque opulence to everyday wear, followed by Alber Elbaz's Lanvin collection emphasizing feminine silhouettes.[94] Marni and Maison Martin Margiela each released capsules in 2012, the latter known for trompe-l'œil effects and deconstructed tailoring.[95] Later partnerships included Alexander Wang in 2013 for streetwear-infused athleisure, Isabel Marant in 2014 blending bohemian and sporty elements, and Balmain in 2015 with embellished, power-shouldered pieces.[96] Kenzo's 2016 collection incorporated psychedelic prints, Erdem's 2017 offerings featured floral embroidery, and Moschino's 2018 line satirized pop culture icons.[92] Giambattista Valli collaborated in 2019 on romantic, voluminous gowns adapted for mass production.[93]| Year | Designer(s) | Focus |
|---|---|---|
| 2004 | Karl Lagerfeld | Womenswear and menswear basics with luxury tailoring[23] |
| 2005 | Stella McCartney | Sustainable womenswear[92] |
| 2006 | Viktor & Rolf | Couture-inspired ready-to-wear[92] |
| 2007 | Roberto Cavalli | Printed dresses and accessories[97] |
| 2008 | Comme des Garçons | Conceptual unisex pieces[97] |
| 2009 | Jimmy Choo | Shoes and bags[94] |
| 2011 | Versace | Bold, ornate apparel[94] |
| 2012 | Marni / Maison Martin Margiela | Patterned and deconstructed designs[95] |
| 2015 | Balmain | Embellished eveningwear[96] |
| 2019 | Giambattista Valli | Voluminous couture adaptations[93] |
Financial Performance and Corporate Governance
Revenue, Profitability, and Growth Trends
H&M Group's net sales grew from SEK 187,031 million in fiscal year 2020 (ending November 30) to a peak of SEK 236,035 million in 2023, reflecting recovery from pandemic-related disruptions and expansion in online channels, before a slight decline to SEK 234,478 million in 2024 amid currency fluctuations, though local-currency sales rose 1 percent.[98][99] This trajectory demonstrates resilience in core markets like Europe, supported by cost efficiencies and selective store optimizations that reduced the total store count from 5,018 in 2020 to 4,253 in 2024.[98] Profitability metrics showed greater volatility, with operating profit surging to SEK 15,255 million (7.7 percent margin) in 2021 before dipping to SEK 7,169 million (3.2 percent) in 2022 due to elevated costs and inventory challenges, then rebounding to SEK 17,306 million (7.4 percent margin) in 2024 via gross margin expansion to 53.4 percent from better sourcing and reduced markdowns.[98][99] Operating expenses increased modestly by 1 percent in local currencies for 2024, reflecting disciplined control despite inflationary pressures.[99]| Fiscal Year | Net Sales (SEK m) | Sales Change (%) | Operating Profit (SEK m) | Operating Margin (%) |
|---|---|---|---|---|
| 2020 | 187,031 | -20 | 3,099 | 1.7 |
| 2021 | 198,967 | +6 | 15,255 | 7.7 |
| 2022 | 223,553 | +12 | 7,169 | 3.2 |
| 2023 | 236,035 | +6 | 14,537 | 6.2 |
| 2024 | 234,478 | -1 | 17,306 | 7.4 |
Ownership Structure and Key Financial Metrics
H & M Hennes & Mauritz AB (publ) is publicly listed on Nasdaq Stockholm under the ticker HM B, with dual-class shares consisting of class A shares (each carrying 10 votes) and class B shares (each carrying 1 vote). As of 30 September 2025, the company had 1,604,491,375 shares outstanding, including 194,400,000 class A shares and 1,410,091,375 class B shares.[101] The structure enables concentrated voting control by long-term holders, particularly the founding Persson family, whose entities—such as Ramsbury Invest AB—predominantly own class A shares.[101] This family holds 1,048,656,855 shares, representing 65.36% of total capital and 83.43% of voting rights, reflecting ongoing share repurchases and acquisitions that have increased their influence since 2023.[101][102] The next largest shareholder is the Lottie Tham family and related companies, with 88,680,651 shares (5.53% of capital, 2.64% of votes). Institutional investors hold smaller stakes, with Swedish funds dominating due to the company's domestic base; foreign ownership accounts for 8.97% of shares and 4.29% of votes.[101]| Shareholder | Shares Held | % of Capital | % of Votes |
|---|---|---|---|
| Stefan Persson family & related | 1,048,656,855 | 65.36 | 83.43 |
| Lottie Tham family & related | 88,680,651 | 5.53 | 2.64 |
| AMF Fonder & Pension | 32,558,262 | 2.03 | 0.97 |
| Vanguard Funds | 21,436,130 | 1.34 | 0.64 |
| BlackRock | 20,450,394 | 1.27 | 0.61 |
Strategic Investments and Cost Management
H&M Group has prioritized investments in its physical and digital retail infrastructure as the largest expenditure category, aiming to enhance customer experiences through store refurbishments, new openings, and e-commerce optimizations. In 2025, these investments continued to focus on creating inspiring shopping environments, with plans including the launch of the brand's first store in Brazil.[106][107] The company also issued a €500 million green bond in October 2023 under its Euro Medium Term Note programme to finance sustainable initiatives aligned with strategic growth.[108] Through H&M Group Ventures, the company has committed over 3 billion SEK to a portfolio of 35 startups by February 2025, targeting innovations in fashion technology, supply chain, and sustainability to support long-term operational advancements. This venture arm remained active into mid-2025, adding three new investments in the prior 12 months across 29 total portfolio companies.[109] Additionally, H&M has directed capital toward new technologies, implementing a structured investment approach in its 2024 annual strategy to balance cost reductions with efficiency gains in areas like automation and data analytics.[50] On cost management, H&M launched a global efficiency programme in November 2022, incorporating restructuring charges to streamline operations and lower overheads across its supply chain and administrative functions.[110] This included reducing supplier numbers to foster deeper, longer-term partnerships that enhance purchasing leverage and production reliability, contributing to improved margins as evidenced by exceeding profit forecasts in Q3 2025.[111] The firm's outsourcing model delegates non-core activities such as manufacturing to specialized partners, allowing focus on design, marketing, and retail while pursuing cost efficiencies through localized sourcing and lead-time reductions.[112][113] H&M's purchasing practices incorporate efficiency metrics, calculating labor costs based on production times, worker wages, and output rates to ensure competitive pricing without compromising supply chain viability.[114] This approach supports a multidomestic operational structure with centralized control, enabling low-cost production scales that align with fast-fashion demands while mitigating inventory risks through agile inventory turnover.[115] Overall, these strategies have driven modest net sales growth of 1% in local currencies for fiscal year 2024, amid efforts to counteract inflationary pressures and competitive dynamics in apparel retail.[116]Global Expansion and Market Presence
Store Network and Regional Strategies
As of November 30, 2024, the H&M Group operated 4,253 stores across 79 markets, reflecting a net decrease of 116 stores from the previous year following 88 openings and 204 closures.[50] The store network is concentrated in Europe, which accounted for 2,449 locations, followed by Asia, Oceania, and Africa with 1,045 stores and North and South America with 759 stores.[50]| Region | Number of Stores (Nov. 30, 2024) |
|---|---|
| Europe | 2,449 |
| Nordics | 380 |
| Western Europe | 1,016 |
| Eastern Europe | 479 |
| Southern Europe | 574 |
| Asia, Oceania & Africa | 1,045 |
| North & South America | 759 |
| Total | 4,253 |