Profits rise to €4.36m at Irish arm of H&M despite revenue dip

The H&M outlet on Opera Lane, Cork. The company delivered a stable performance compared to the prior year, despite ongoing challenges within the retail sector, directors stated.

Pre-tax profits at the Irish arm of clothing retail giant H&M increased by 13% to €4.36m last year after the firm delivered a "stable performance".

New accounts show that pre-tax profits increased at the Swedish-owned H&M Hennes & Mauritz (Ireland) Ltd as revenues declined by 1.3%, or €1.39m, from €111.99m to €110.6m in the 12 months to the end of November 30, 2025.

In their report, the directors state that 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”.

The firm approved a dividend of €3m on November 21 last year, and paid out the dividend on December 11 in a post-balance-sheet event.

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

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

They state that “despite the continued challenges, the company's brands share the same longstanding commitment to offer our customers the best combination of fashion, quality, price, and sustainability, and to give value”.

The firm last year enjoyed the full 12-month performance of the H&M outlet at Clery’s Quarter, which opened in March 2024.

At 30,000sq ft spread across two floors, the outlet is the second-largest store for H&M in Ireland.

During 2025, the company operated 23 stores across the country, made up of 14 H&M stores, one & Other Stories store, one Arket store, and seven COS stores.

Operating profit last year increased by 22% to €4.4m, and net interest payments received of €37,332 reduced profits to a pre-tax profit of €4.36m.

During the year, the company’s operating expenses reduced by 8% from €61.05m to €56.34m as cost of sales increased from €47.45m to €49.94m.

On the firm’s future developments, the directors state that the company is focusing on meeting new consumer trends along with the global H&M Group strategy.

They state that to enable this strategy, the directors “will focus on redeveloping the existing store portfolio to enhance the customer experience and maximise the omni-channel shopping experience”.

The firm had a post-tax profit of €3.27m after recording a corporation tax charge of €1.09m.

The number of employees last year increased by 26, from 541 to 567, as staff costs rose from €11.96m to €12.94m. Directors' remuneration totalled €225,626.

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

The company received unspecified other operating income of €93,776 in 2025, compared to €111,607 under that heading in 2024.

At the end of November 2025, the firm had shareholder funds of €21.46m that included accumulated profits of €14.89m.