Store Closures and Global Strategy

Swedish fashion retailer H&M plans to close two stores in New York city by January 2026, as part of a broader strategy to close a total of 200 stores in 2025. This decision comes despite the company reporting higher-than-expected earnings, according to Independent.

H&M has already closed 135 stores in the last nine months, primarily in Asia, Oceania, and Africa.In Europe, 21 stores have ceased operations, and the company anticipates this trend will continue.

Financial Performance

For the period of june-August,H&M reported an operating profit of SEK 4.91 billion (approximately $450 million USD as of December 7,2024),a significant increase from SEK 3.51 billion reported during the same period last year. This exceeded analysts’ expectations and marked a recovery following two consecutive quarterly declines. H&M Group’s report details these figures.

Leadership Outlook

CEO Daniel Erver emphasized that the company is “taking steps in the right direction,” but cautioned that the market remains challenging and consumers are cautious due to ongoing economic uncertainty.

Erver attributed the improved profits to enhancements in the product portfolio, increased gross margins, and strict cost control measures, which he believes are crucial for the brand’s sustainable future development.