Esprit Holdings Limited vs H&M Group
H&M Group still runs a real business with billions in sales while Esprit Holdings has shrunk to a bare trademark license, so H&M holds the stronger position.
Esprit Holdings Limited
Esprit Holdings now just licenses the ESPRIT trademark after its retail arms collapsed
H&M Group
Swedish fast-fashion retailer running H&M, COS, and Weekday through 4,000+ stores worldwide
Dimension by dimension
| Dimension | Esprit Holdings Limited | H&M Group |
|---|---|---|
| Staying power of the core product | Esprit's retail operations collapsed through 2024 insolvencies across Europe, the US, and Canada; the company now only licenses its name. | H&M still operates over 4,000 stores under H&M, COS, and Weekday, with FY2025 net sales of SEK 228bn. |
| Exposure to AI | Marked likely to be absorbed by AI, though with almost no operating business left this matters less than the underlying collapse. | Marked unlikely to be absorbed by AI, since physical clothing retail and store operations are not easily replaced by AI tools. |
| How easily a giant copies them | Likely to be copied, but there is barely a business left worth copying. | Likely to be copied too, and Inditex/Zara is actively outperforming H&M on sales and margin growth. |
| Pressure from rivals | Zara, H&M, and Uniqlo already took Esprit's customers years ago, and the 2024 insolvencies confirm the business could not withstand that pressure. | Facing pressure on two fronts, losing share to Inditex/Zara in Western Europe while Shein and Temu undercut on price. |
| Financial footing | Group revenue fell from HK$7,063M to HK$20.5M between FY2022 and FY2025, with a net loss of roughly HK$20.5-21M in FY2025. | FY2025 net profit of SEK 12bn on SEK 228bn in sales, though H1 FY2026 net sales dipped 1% in local currency to SEK 104.4bn. |
| Overall standing | Esprit's near-total revenue collapse and 2024 insolvencies, assessed July 2026, show a business that has effectively ceased operating and faces almost total exposure to further erosion. | H&M's continued global store network and FY2025 profit, assessed July 2026, show a business under real strain from Inditex/Zara and Shein/Temu but still functioning at scale. |
Questions people ask
- Esprit Holdings vs H&M Group, which one is in better shape?
- H&M Group is in far better shape. Esprit Holdings has collapsed to the point where it only licenses its trademark, while H&M still runs thousands of stores and posted SEK 12bn in net profit for FY2025.
- Is Esprit Holdings still a real retailer?
- Not really. Esprit's retail arms went through insolvencies across Europe, the US, and Canada in 2024, and the company now survives mainly by licensing the ESPRIT name rather than running stores itself.
- Is H&M losing to Zara?
- H&M is under pressure from Inditex, which owns Zara and is growing sales and margins faster than H&M in Western Europe. H&M also faces price competition from Shein and Temu, which adds to the squeeze.
- Which company is more exposed to AI, Esprit or H&M?
- Esprit is marked as likely to be absorbed by AI, while H&M is marked unlikely, since running physical clothing stores is harder for AI tools to replace. That said, Esprit's bigger problem is that its retail business already collapsed for other reasons.
- How do Esprit's and H&M's revenues compare?
- Esprit's group revenue fell from HK$7,063M in FY2022 to just HK$20.5M in FY2025, a near-total collapse. H&M, by contrast, reported FY2025 net sales of SEK 228bn, though its H1 FY2026 sales dipped 1% in local currency.
Other comparisons with these companies