H&M Accelerates Restructuring: Fewer Stores by 2026

H&M Group is significantly shrinking its worldwide presence, having closed 128 stores by May 31, 2026. This reduction, which lowered the company's total store count to 4,038 globally, is part of a multi-year restructuring effort designed to boost long-term profitability and improve customer engagement across its brands.

The strategic shift responds to evolving consumer behaviors and increased competition from e-commerce platforms. H&M's CEO, Daniel Ervér, emphasized the goal of becoming more relevant to customers by making quicker decisions closer to them. While net sales saw a slight decrease of 1% year-over-year in local currencies, the company achieved a 12% profit margin, demonstrating strong operational efficiency and cost management.

These closures extend previous actions, building on plans to optimize its physical footprint. The company is also increasing investments in omnichannel growth, indicating a focus on digital expansion alongside a leaner store network. H&M anticipates that these portfolio changes will yield slightly positive impacts by the end of the 2026 fiscal year.