H&M plans to source more from India, leveraging trade deal and local supply advantages, CEO says

H&M CEO Daniel Erver said that the Swedish fast fashion giant sees India as an increasingly attractive market for sourcing, especially with the India-European Union trade agreement including textiles.

“We want to source more from India, and the fact textiles are part of the trade agreement is positive,” Erver told Reuters, adding that removing tariffs on textiles would make India “even more attractive as a market for us to source from.”

Under the agreement, set to take effect in about a year, the EU will immediately scrap duties on 90% of Indian exports, including the current 12% tariff on textiles and apparel. Currently, India accounts for only 3% of the EU’s $250 billion apparel market, with China, Bangladesh, and Vietnam dominating shipments thanks to lower tariffs.


Erver also noted that H&M’s customers are “prepared to shop across a broader range of price points,” highlighting flexibility in its product offering. On logistics, he said, “If shippers return to the Red Sea, it would impact lead times and help us be quicker and more reactive.”

The comments came as H&M reported a strong fourth-quarter performance, with net profit rising to 4.3 billion kronor ($488 million) from 2.9 billion kronor a year earlier, beating analysts’ estimates of 3.8 billion kronor. Operating profit climbed to 6.4 billion kronor, while operating margins improved to 10.7 percent from 7.4 percent a year ago.

Sales for the quarter dipped slightly to 59.2 billion kronor from 62 billion kronor due to currency effects, though online sales continued to perform well, accounting for over 30 percent of total revenue. For 2025, annual net profit rose to 12 billion kronor from 11.6 billion kronor.

Erver noted that strong Black Friday sales in November were followed by subdued demand in December, and the shift of the Chinese New Year to February would create a “negative calendar effect.” Looking ahead, he stressed the importance of agility, short decision paths and cost control amid “continued geopolitical and economic uncertainty.”