H&M Hennes & Mauritz AB vs Inditex: Revenue, Profit and Business Model
H&M Hennes & Mauritz AB reported ~$22.8B of revenue in FY2026 and ~$1.2B of net income. Inditex reported ~$45B of revenue in FY2025 and ~$7B of net income.
Latest financial snapshot
H&M Hennes & Mauritz AB
- Latest revenue
- ~$22.8B (FY2026)
- Net income
- ~$1.2B
- Net margin
- 5.3%
- Revenue growth
- +2.8% a year, FY2021–FY2026
Inditex
- Latest revenue
- ~$45B (FY2025)
- Net income
- ~$7B
- Net margin
- 15.6%
- Revenue growth
- +9.5% a year, FY2021–FY2025
Financial summary
H&M Hennes & Mauritz AB
H&M's sales have been roughly flat in local currencies for several years, and a stronger krona has cut reported revenue: net sales fell from ~$23.6 billion (SEK 236.0 billion) in FY2023 to ~$22.8 billion (SEK 228.3 billion) in FY2025. Profitability is improving instead. Operating margin rose from 7.4% in FY2024 to 8.1% in FY2025, and reached 10.6% in Q3 2026 (about 1.6 points of that came from one-time tariff effects). Rolling 12-month operating margin was 9.0% at August 2026, still short of the group's 10%+ target. The board proposed a SEK 7.10 dividend for 2025, and CapEx is planned at SEK 9-10 billion for 2026.
Inditex
Inditex grew sales from ~$31.3 billion (€27.7 billion) in FY2021 to ~$45.1 billion (€39.9 billion) in FY2025 (fiscal year ended 31 January 2026), while net profit nearly doubled from ~$3.62 billion (€3.2 billion) to ~$7.01 billion (€6.2 billion). FY2025 gross margin reached 58.3% and EBIT ~$9.04 billion (€8.0 billion). In the first half of 2026 (February to July), sales rose 7.6% to ~$22.4 billion (€19.8 billion) (9.2% in constant currency), gross margin improved to 58.7% and net profit rose 6.8% to about $3.39 billion (€3.0 billion). Sales in the first weeks of autumn/winter (1 August to 7 September 2026) were up 9% in constant currency. The group pays out a large share of profit as dividends, including a €0.875 per share final FY2025 dividend payable on 2 November 2026.
Revenue and profit by year
H&M Hennes & Mauritz AB
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$22.8B | ~$1.2B | 5.3% | +0.0% | |
| FY2025 | ~$22.8B | ~$1.2B | 5.3% | -2.6% | Source |
| FY2024 | ~$23.4B | ~$1.2B | 4.9% | -0.7% | Source |
| FY2023 | ~$23.6B | ~$874.5M | 3.7% | +5.6% | Source |
| FY2022 | ~$22.4B | ~$356.6M | 1.6% | +12.4% | Source |
| FY2021 | ~$19.9B | ~$1.1B | 5.5% | — | Source |
Where the revenue comes from
H&M Hennes & Mauritz AB
- H&M brand (incl. H&M HOME, Move, Beauty)
Majority of sales
The core brand sells womenswear, menswear, kidswear, sportswear, beauty and homeware in stores and online. H&M does not publish an exact brand split.
- Portfolio brands
Not disclosed
COS, Weekday, & Other Stories, ARKET and Singular Society serve contemporary, premium and youth customers.
- Franchise, resale and other
Not disclosed
Franchise partners run stores in some markets, and Sellpy sells secondhand clothing online.
Inditex
- Own Stores and Online
Majority of sales
Sales through stores and online platforms the group runs directly across its seven brands.
- Franchise Sales
Minority of sales
Sales to franchise partners operating Inditex banners in markets such as parts of the Middle East and Latin America.
Business model and strategy
H&M Hennes & Mauritz AB
How it makes money
H&M makes money by designing its own clothing, beauty and home products and selling them at low and mid price points. It owns no factories; production is outsourced to independent suppliers, largely in Asia and Europe, while H&M controls design, buying, logistics and retail. Most revenue comes from company-run stores and its own websites and apps, with franchise partners operating stores in some markets.
Growth strategy
Under CEO Daniel Ervér, H&M is prioritizing profitable growth over store count. The plan includes shorter buying decisions and a higher share of in-season purchasing, a simplified organization, upgraded flagship stores, a refreshed digital store, stronger brand marketing (H&M and COS showed collections at London and New York fashion weeks), and expansion in Latin America.
Competitive advantage
H&M's advantages are scale and reach: roughly 3,000 stores in 81 markets, a global online business, decades-long supplier relationships, and a multi-brand portfolio that spans value (H&M), contemporary (COS, & Other Stories, ARKET), youth (Weekday) and resale (Sellpy).
Inditex
How it makes money
Inditex is a vertically coordinated retailer. Designers in Arteixo and the brand headquarters work from daily store and online sales data; production is split between suppliers close to Spain (Spain, Portugal, Morocco, Turkey) that can react within weeks and longer-lead suppliers in Asia for basics.
Growth strategy
Inditex's growth plan rests on fewer but larger stores (5,444 stores at July 2026 versus 5,528 a year earlier, after optimisation in 51 markets), continued online integration, brand elevation at Zara and Massimo Dutti, and logistics capacity added through an extraordinary investment program in 2024-2025.
Competitive advantage
Inditex's advantage is speed combined with scale. Proximity sourcing, centralized Spanish logistics and RFID-tracked inventory let it test small batches, restock what sells and drop what does not. That model produces industry-leading profitability: ~$9.04 billion (€8.0 billion) of EBIT on ~$45.1 billion (€39.9 billion) of FY2025 sales, versus far thinner margins at most mass-market apparel rivals.
Questions about H&M Hennes & Mauritz AB vs Inditex
Which company has higher revenue — H&M Hennes & Mauritz AB or Inditex, S.A.?
H&M Hennes & Mauritz AB reported ~$22.8B (FY2026), while Inditex, S.A. reported ~$45B (FY2025). By last reported revenue, Inditex, S.A. is the larger business, with H&M Hennes & Mauritz AB reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of H&M Hennes & Mauritz AB vs Inditex, S.A.?
H&M Hennes & Mauritz AB's market capitalisation stands at $26.2B, while Inditex, S.A.'s is $166.0B. Inditex, S.A. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to H&M Hennes & Mauritz AB.
Which is more financially efficient — H&M Hennes & Mauritz AB or Inditex, S.A.?
H&M Hennes & Mauritz AB generates $183k / employee in revenue per employee, while Inditex, S.A. generates $276k / employee. Inditex, S.A. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do H&M Hennes & Mauritz AB and Inditex, S.A. make money?
H&M Hennes & Mauritz AB and Inditex, S.A. generate revenue in fundamentally different ways. H&M Hennes & Mauritz AB: H&M makes money by designing its own clothing, beauty and home products and selling them at low and mid price points. Inditex, S.A.: Inditex is a vertically coordinated retailer.
Which company is valued higher relative to revenue — H&M Hennes & Mauritz AB or Inditex, S.A.?
On a price-to-sales (P/S) basis, H&M Hennes & Mauritz AB trades at 1.1x P/S and Inditex, S.A. at 3.7x P/S. Inditex, S.A. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to H&M Hennes & Mauritz AB. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is H&M Hennes & Mauritz AB bigger than Inditex, S.A.?
By last reported revenue, Inditex, S.A. (~$45B (FY2025)) is the larger company compared to H&M Hennes & Mauritz AB (~$22.8B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the H&M Hennes & Mauritz AB vs Inditex overview