Industry Turnover:

• Clothing and Fashion: approx. 80%
• Accessories and Shoes: approx. 15%
• Home Textiles and Home Accessories: approx. 5%

TOP 3 Markets:

• Germany: approx. 20%
• USA: approx. 15%
• United Kingdom: approx. 10%

H & M Hennes & Mauritz AB generates the majority of its turnover from the clothing and fashion industry, with accessories and home textiles also making a significant contribution. The German market is the largest single market for H & M, followed by the USA and the United Kingdom. These markets are crucial for the company as they account for a substantial part of the total turnover.

Main production countries: Bangladesh, China, India, Turkey, Vietnam

H & M Hennes & Mauritz AB produces its products in several countries worldwide, with a focus on Asian countries. Bangladesh and China are among the largest production sites due to the cost-effective labor force and the established textile industry.

In addition, H&M has production facilities in India, Turkey, and Vietnam to benefit from the respective advantages of these regions, such as proximity to sources of raw materials and logistical connections to key markets.

The company pursues a strategy of diversifying its production sites to minimize risks and be able to flexibly respond to market changes.

Revenue Growth: 10% (2024, estimated)
Online Sales Share: 30% of total revenue (2024, estimated)
Sustainability Goals: 100% sustainable materials by 2030

H&M is pursuing a multi-pronged growth strategy focusing on digitalization, sustainability, and geographical expansion. A key element of this strategy is strengthening the online business, which is expected to account for 30% of total revenue by 2024. This will be achieved through investments in digital infrastructure and enhanced customer experiences.

Furthermore, H&M places a strong emphasis on sustainability. The company has committed to using only sustainable materials by 2030. This initiative aims not only to reduce environmental impact but also to enhance the brand image and attract new environmentally conscious customers.

In addition, H&M plans to expand its presence in emerging markets to tap into new customer segments and further drive revenue growth. This expansion will be supported by the opening of new stores and partnerships in strategically important regions.

Main raw materials: Cotton, Polyester, Wool, Viscose

Main importing countries:

• Cotton: India, China, USA
• Polyester: China, South Korea
• Wool: Australia, New Zealand
• Viscose: China, Indonesia

H&M sources a variety of raw materials from different countries to support its textile production. Cotton, one of the most important raw materials, is mainly imported from India, China, and the USA. These countries are leading in cotton production and provide the required quality and quantity.

Polyester, a synthetic material, is predominantly sourced from China and South Korea. These countries are known for their advanced technologies in the production of synthetic fibers.

For wool, which is used in many winter collections, H&M mainly imports from Australia and New Zealand, known for their high-quality wool products.

Viscose, a semi-synthetic fiber, is mainly imported from China and Indonesia. These countries specialize in viscose production and offer competitive prices and high quality.

Gross margin: 52.5% (2024)
Market share in Europe: 8% (2024)
Online sales growth: 18% (2024)

H & M Hennes & Mauritz AB has a significant competitive advantage due to its strong brand awareness and broad global presence. The gross margin of 52.5% shows that the company is able to effectively control its costs and remain profitable. This is an indicator of an efficient supply chain and a strong negotiating position with suppliers.

The market share of 8% in Europe underscores H & M's strong position in one of the most important fashion markets in the world. The company has managed to maintain its position despite intense competition, indicating an effective market strategy and an appealing product offering.

The online sales growth of 18% shows that H & M has successfully invested in digital distribution to meet changing consumer preferences. This is particularly important at a time when the e-commerce sector is steadily growing and challenging traditional retail models.

Overall, through its strategic initiatives and adjustments to market trends, H & M has a solid competitive advantage that enables the company to thrive in a dynamic and challenging market environment.

Institutional investor share: Approx. 70% (estimated for 2025)

Insider purchases/sales: No significant changes in the last quarter

The institutional investor share at H&M typically stands around 70%, indicating a high level of trust from professional investors in the company's stability and growth potential. These investors include large investment funds, pension funds, and other institutional investors pursuing long-term investment strategies.

There were no significant insider purchases or sales in the last quarter, suggesting that the management and other insiders currently do not expect significant changes in the company's valuation or strategy. This can be interpreted as a sign of stability and confidence in the current corporate leadership and direction.

Market share of H & M: Estimate 4.5% (2025, global clothing market)

Main competitors and their market shares:

1. Inditex (Zara): Estimate 7.0%
2. Fast Retailing (Uniqlo): Estimate 5.5%
3. H & M: Estimate 4.5%
4. Gap Inc.: Estimate 3.0%
5. L Brands (Victoria's Secret): Estimate 2.5%
6. PVH Corp. (Calvin Klein, Tommy Hilfiger): Estimate 2.0%
7. VF Corporation (The North Face, Vans): Estimate 1.8%
8. Primark: Estimate 1.5%
9. American Eagle Outfitters: Estimate 1.2%
10. Abercrombie & Fitch: Estimate 1.0%

Moat of H & M:

H & M has a moderate moat, mainly characterized by its global presence, strong brand awareness, and efficient supply chains. The company benefits from a wide network of stores and a strong online presence, helping it reach a broad customer base.

Compared to its competitors, Inditex (Zara) has a stronger moat due to its faster responsiveness to fashion trends and more efficient logistics chain. Fast Retailing (Uniqlo) has also gained a significant advantage through its focus on high-quality basics and innovative materials.

H & M must continue to invest in its digital transformation and sustainability initiatives to strengthen its moat and remain competitive. Competition in the fast-fashion industry is intense, and companies must continuously adapt to remain relevant.

Revenue growth: 8.5% (2024) Profit growth: 10.2% (2024) Market share in Europe: 12% (2024)

H&M recorded a revenue growth of 8.5% in 2024, attributed to successful expansion into new markets and an enhanced online presence. The profit growth of 10.2% indicates that the company was able to increase its efficiency and benefit from cost-cutting measures.

H&M's market share in Europe stands at 12%, highlighting the company's strong position in one of its key markets. This market position enables H&M to benefit from economic recoveries and consumption trends in the region.

Additionally, H&M has invested in sustainable fashion and environmentally friendly production methods, helping the company to differentiate itself from competitors and appeal to a younger, environmentally conscious customer base. These strategic initiatives could lead to stronger brand loyalty and a stable customer base in the long run.

Overall, the current growth figures and strategic initiatives suggest that H&M is well positioned to continue growing in the coming years. This makes the stock a potentially attractive investment, especially for investors interested in long-term growth.

Dividend Yield: 4.5% (2025, estimated)
Dividend History: Stable payouts in recent years

H & M Hennes & Mauritz AB (publ) is known for regularly distributing dividends to its shareholders. The dividend yield is estimated to be around 4.5% for 2025, which is considered attractive compared to other companies in the apparel industry.

In recent years, despite economic challenges such as the COVID-19 pandemic, H&M has maintained its dividend policy, indicating a solid financial foundation and a sustainable business model. The reliability of the payout is supported by a conservative financial strategy and a strong market position.