H&M overcomes online sales dip to report 13% rise in pretax profit

Online sales dipped at the Irish arm of clothing retail giant H&M last year but that failed to dent profits which jumped by 13 per cent to €4.36 million.

New accounts show that pretax profits increased at the Swedish owned H&M Hennes & Mauritz (Ireland) Ltd even as revenues declined by 1.3 per cent, or €1.39 million, to €110.6 million from €111.99 million in the 12 months to the end of November 2025.

The decline in revenues “was primarily due to lower-than-expected customer demand in the online channel but was partly offset by a positive store performance”, directors said.

The business approved a dividend of €3 million to its parent.

The directors said the company delivered a stable performance compared to prior year, despite ongoing challenges within the retail sector.

The slight fall in sales was offset by savings in operating expenses, according to the directors.

The company benefited last year from a full 12-month contribution from the H&M outlet at Clerys Quarter which opened in March 2024. At 30,000 sq ft spread across two floors, the outlet is the second largest H&M store in Ireland.

The group operated 23 stores across the State last year, comprising 14 H&M stores, one & Other Stories store, one Arket store and seven COS stores.

Operating profit increased by 22 per cent to €4.4 million before net interest payments of €37,332 trimmed profits at the pretax level to €4.36 million.

Operating expenses came in 8 per cent lower at €56.34 million compared to €61.05 million the year before despite a rise in cost of sales from €47.45 million to €49.94 million.

After paying corporation tax of €1.09 million, profit after tax came to €3.27 million.

Numbers employed last year increased by 26 from 541 to 567 as staff costs rose from €11.96 million to €12.94 million. Directors’ remuneration totalled €225,626.

The profit for 2025 takes account of non-cash depreciation costs of €5.89 million and rental costs of €4.25 million.

The company received unspecified other operating income of €93,776 in 2025 compared to €111,607 under that heading the previous year.

At the end of November 2025, the business had shareholder funds of €21.46 million, including accumulated profits of €14.89 million.