H&M profits fall by 21% in Spain amid store closures

H&M has reported a decline in performance within the Spanish market, facing increased competition from local giant Inditex (Zara) and other retailers such as Mango, Primark, and Shein.

According to filings from the Spanish Mercantile Registry for the fiscal year ending in November 2025, H&M's net profit in Spain fell by 21.3% to 12.2 million euros. Sales also decreased by 2.2%, totaling 469.2 million euros. This downturn is attributed to a strategy of portfolio optimization, which included opening only two new stores while closing nine establishments.

The company's physical footprint in Spain has shrunk to 113 stores, down from the previous year. Consequently, the workforce in the Spanish subsidiary decreased from 3,470 to 3,216 employees. Despite the drop in profit, the Spanish subsidiary distributed an extraordinary dividend of 30 million euros to its Swedish parent company, marking the highest such payment in the last five years.