Fashion
Sweden’s H&M delivers stronger FY25 margins on inventory gains
The gross profit totalled SEK 121,821 million, with the gross margin unchanged at 53.4 per cent. Selling and administrative expenses declined 4 per cent to SEK 103,292 million (~$11.7 billion).
H&M has improved profitability in FY25 despite currency headwinds, with local-currency sales up 2 per cent and operating margin rising to 8.1 per cent.
Cost control, inventory optimisation and strong European demand supported earnings.
Q4 margins strengthened sharply, while store rationalisation and sustainability progress remained key strategic pillars.
The operating profit increased to SEK 18,395 million from SEK 17,306 million, lifting the operating margin to 8.1 per cent from 7.4 per cent. Profit after tax rose to SEK 12,085 million, corresponding to earnings per share of SEK 7.58. Cash flow from operating activities after working capital changes amounted to SEK 31,120 million, H&M said in a press release.
Region-wise, Western Europe remained the largest market at SEK 79,195 million, with flat sales in SEK but 2 per cent growth in local currencies, indicating stable core demand. Eastern and Southern Europe delivered the strongest underlying growth, with local currency sales rising 4 per cent and 5 per cent respectively for the full fiscal. The Nordics recorded a 1 per cent decline in local currencies, reflecting a more mature home market. North and South America saw softer demand, with sales down 5 per cent in SEK and 1 per cent in local currencies, while Asia, Oceania and Africa declined 7 per cent in SEK and 1 per cent in local currencies, impacted by weaker markets and FX effects.
The store network continued to be optimised, with total stores falling to 4,101 from 4,253, a net reduction of 152 stores YoY. The largest closures were in Asia, Oceania and Africa, followed by Western Europe, while North and South America was the only region to add stores.
In the fourth quarter of FY25, sales increased 2 per cent in local currencies, even as the store base was around 4 per cent smaller YoY. In SEK terms, Q4 net sales declined to SEK 59,221 million from SEK 62,193 million, reflecting a negative currency translation impact of around 7 percentage points due to the stronger krona.
The gross margin improved to 55.9 per cent from 54.6 per cent, while operating profit surged 38 per cent to SEK 6,364 million, lifting the operating margin to 10.7 per cent. Profit after tax rose to SEK 4,332 million, or SEK 2.72 per share. Inventory levels declined 12 per cent YoY to SEK 35,427 million, signalling improved stock efficiency.
On sustainability, H&M said its Scope 3 greenhouse gas emissions fell by around 30 per cent in 2025 compared with the 2019 baseline, keeping the group on track to meet its 56 per cent reduction target by 2030. The company was A-listed by CDP for climate and water during the year.
Looking ahead, H&M expects sales between December 1, 2025, and January 31, 2026, to decline 2 per cent in local currencies, citing strong Black Friday sales, weaker December demand and a negative calendar effect linked to the timing of the Chinese New Year. Capital expenditure for 2026 is planned at SEK 9-10 billion, focused on store upgrades, technology infrastructure and the gradual rollout of new logistics solutions in Europe.
“Our work in 2025 has gradually contributed to positive development towards all our long-term targets. The sales trend is positive over the year as a whole, and earnings strengthened in the second half,” said Daniel Erver, CEO of H&M.
Fibre2Fashion News Desk (SG)
Fashion
South Korea’s Misto Holdings’ 2025 profit jumps 31.6% on steady growth
The Misto segment recorded annual revenue of KRW 829.6 billion, down 9.6 per cent YoY due to US restructuring and inventory clearance. However, operating profit rebounded to KRW 74.7 billion, signalling a strong turnaround, with the segment delivering its fourth consecutive quarter of profitability.
Misto Holdings has reported revenue of KRW 4.47 trillion (~$2.97 billion) in 2025, up 4.7 per cent YoY, with operating profit rising 31.6 per cent.
While the Misto segment declined, profitability improved.
Growth was driven by Greater China and steady Acushnet performance.
In Q4, revenue rose 6.3 per cent, led by Acushnet, while the company returned KRW 285.4 billion to shareholders.
The growth momentum was led by Greater China, which delivered triple-digit expansion in 2025 as the company scaled its presence through leading K-fashion brands such as Marithe+Francois Girbaud, Matin Kim, Rest and Recreation, and Raive. In Korea, Fila continued to benefit from stable demand in its footwear franchise models, Misto Holdings said in a press release.
The Acushnet segment maintained steady performance, supported by robust demand for golf equipment and premium positioning, contributing to overall earnings stability.
“2025 was a meaningful year in which we further clarified our identity as a global brand portfolio company following our corporate name change. Based on the expansion of our Greater China business, improved profitability in the Misto segment, and Acushnet’s solid growth, we strengthened the stability of our earnings. We will continue to enhance brand value, maintain profitability-focused management, and execute our shareholder return policy to support sustainable growth,” said Ho Yeon (Aaron) Lee, CFO of Misto Holdings.
Meanwhile, in the fourth quarter (Q4), revenue rose 6.3 per cent YoY to KRW 915.2 billion, supported by profitability-focused operations, restructuring of its US business, and continued growth at Acushnet despite macroeconomic uncertainty.
Acushnet remained a key contributor in Q4, with revenue increasing 10.9 per cent YoY to KRW 698.3 billion, driven by strong sales of Titleist T-Series irons and SM10 wedges, along with higher average selling prices for FootJoy golf shoes.
Misto Holdings also advanced its shareholder return strategy, returning approximately KRW 285.4 billion through dividends and share repurchases in 2025, achieving 57.1 per cent of its three-year target.
Fibre2Fashion News Desk (SG)
Fashion
China sees rise in new FDI firms despite lower inflows
However, actual use of foreign direct investment (FDI) in the Chinese mainland declined during the same period, falling 5.7 percent year on year (YoY) to ¥161.45 billion ($23.43 billion), as mentioned in official ministry figures.
China established 8,631 new foreign-invested firms in the first two months of the year, up 14 per cent YoY, even as actual FDI inflows fell 5.7 per cent to ¥161.45 billion ($23.43 billion).
High-tech industries attracted ¥63.21 billion ($9.19 billion), rising 20.4 per cent and accounting for 39.2 per cent of total inflows, while investment from Canada and Switzerland surged sharply.
Sector-wise, FDI inflows totalled ¥47.52 ($6.90 billion) in manufacturing and ¥111.22 billion ($16.17 billion) in services, indicating continued dominance of the service sector in attracting foreign capital. High-tech industries remained a key growth area, drawing ¥63.21 billion ($9.19 billion) in investment, up 20.4 per cent year on year (YoY) and accounting for 39.2 percent of the national total.
In terms of source countries, investment from Canada and Switzerland recorded strong gains, surging 210 per cent and 41.3 per cent respectively compared with the same period last year, highlighting a shift in the composition of foreign capital entering the Chinese market.
Fibre2Fashion News Desk (JP)
Fashion
APAC CEOs positive about domestic growth, doubt global growth: KPMG
In 2023, 73 per cent of APAC CEOs were optimistic about global economic prospects; however, it was down to 64 per cent in 2025. Globally, only 68 per cent of CEOs remain upbeat about this—the lowest level seen in four years.
APAC CEOs reported much more optimism in 2025 about the growth prospects of their own economies over the next three years, while confidence in global economic prospects dropped, KPMG said.
Optimism about their own country’s prospects was the highest in Australia and lowest in India last year.
About four-fifths of APAC CEOs also saw substantial growth opportunities for their organisations and industries.
Optimism about their own country’s prospects was the highest in Australia (90 per cent) and lowest in India (71 per cent) last year, a KPMG release said citing its latest annual ‘APAC CEO Outlook’.
The declining confidence of APAC CEOs in the global landscape also reflects ongoing uncertainty and volatility that has plagued the global markets, stemming from an evolving geopolitical landscape, persistent supply chain constraints and intensifying scrutiny on sustainability, KPMG noted.
Furthermore, about 80 per cent of APAC CEOs also saw substantial growth opportunities for their organisations and industries, in line with the global average.
In fact, in 2025, executives appear more certain that their companies are on an upward trajectory compared to the previous year: 61 per cent of respondents expect earnings to increase by more than 2.5 per cent this year, compared to just 52 per cent in 2024.
CEOs in Japan (76 per cent) are particularly optimistic about their earnings outlook compared to global and regional peers, reflecting its solid domestic demand and stable GDP performance.
This positivity is driving many in APAC to continue investing in their businesses, with executives noting that there is strong appetite for increased hiring (92 per cent) and mergers and acquisitions (87 per cent) over the next three years, and a substantial number (82 per cent) of APAC CEOs expecting to spend more than 10 per cent of their budgets on artificial intelligence (AI) in the next 12 months.
This clearly indicates that subdued global outlook has not dampened optimism around companies’ prospects in APAC, KPMG remarked.
Confidence in the growth prospects of the global economy is lowest among Chinese companies (58 per cent). This likely reflects, in part, the impacts of an uncertain tariff environment. Strained relations with its main export partner and uncertainty around global demand are likely some areas of concern among firms in China.
Global trade risks topped the minds of APAC CEOs last year, especially as geopolitical tensions and trade realignments dominated headlines. These trends have persisted in 2025, with supply chain resilience remaining a top three driver of organisational decision-making in the short term.
However, the landscape is shifting with the arrival of emerging technologies like generative AI. AI integration is the top issue driving APAC executives’ short-term decision-making, a notable contrast with global peers who are more focused on cybersecurity issues and supply chain resilience, KPMG added.
Fibre2Fashion News Desk (DS)
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