H&M sales fall, profits down 21% in Spain

H&M reported a 21% reduction in profit and sales in Spain, according to their national subsidiary's filings. The company closed its last fiscal year in Spain with a business figure of 469.2 million euros, a 2.2% decrease from the previous year. However, their operating result fell by 20.2% to 14.5 million euros, while their net profit declined by 21.3% to 12.2 million euros, as per the accounts published in the Spanish Commercial Registry.

The document, referring to the fiscal year ending in November 2025, stated that the drop in sales was due to H&M only opening two stores in Spain during the past fiscal year, while closing nine establishments. As of November 30, 2025, H&M had a total of 113 stores in Spain. The company has continued its plan to optimize its current portfolio of stores through renegotiations, extensions, closures, and renovations to enhance the customer experience.

The closure of stores resulted in a reduction of the H&M Spain subsidiary's workforce, dropping from 3,470 to 3,216 employees. Despite the downsizing, the Swedish textile giant assures that the reception of the company's commercial activity in the Spanish market remains favorable. H&M transferred its logistics activity in Spain to a newly created subsidiary, Hennes & Mauritz Supply, which assumed all contracts, rights, and obligations related to the activity, ensuring its operational continuity.

In the previous year, H&M Spain distributed 30 million euros in dividends to its parent company, marking the highest payment in the last five years, with a total of 60 million euros.