H&M reported first-quarter sales fell 1% in local currency to 49.6 billion kronor ($5.3 billion), missing analyst forecasts, though cost controls helped it beat profit estimates. The retailer faced weak consumption and currency headwinds, with sales in March expected to rise 1% locally. RBC analysts noted the recovery remains unbalanced.

CEO Daniel Erver, since 2024, has focused on operational stabilization, reducing inventory and boosting margins from 3% in 2022 to 8% in 2025. However, the results highlight challenges against rivals like Inditex (9% constant-currency sales growth) and low-cost players such as Shein and Primark, which pressured H&M's growth. The company also reduced its store count by 4% year-over-year.