Holiday shopping means sales, markdowns on your favorite brands, and last-minute shopping.

But often being late to the shopping frenzy that comes with these deals means losing out on variety or facing limited stock.

Last year, retailer H&M struggled to offer more of the clothes shoppers wanted in stock.

However, they are better prepared for the upcoming holiday season.

Beyond an updated inventory, shoppers can also encounter more markdowns.

“Markdowns are expected to be somewhat higher in the fourth quarter than the same period last year,” Chief Financial Officer Adam Karlsson said during H&M’s third-quarter earnings call.

The company said part of that increase is tied to the calendar. 

Also read: Iconic children’s retailer launches new strategy to win customers

This year’s November promotional period is longer, and Cyber Monday falls within H&M’s fiscal fourth quarter, unlike last year.

But another shift could be particularly noticeable to U.S. shoppers: H&M has more merchandise available.

H&M says it was too cautious in the U.S. last year

H&M CEO Daniel Ervér said the retailer planned too conservatively for the U.S. markets during the second half of 2025, leaving it without enough inventory in some categories and price points.

“We had a very cautious plan for the U.S. last year,” Ervér said during the earnings call.

That meant H&M did not always have enough merchandise to meet demand.

This year, the retailer has changed course.

“We have covered those gaps,” Ervér said.

Here’s some of my previous coverage of how fashion retailers are changing to win shoppers:

• Carter’s: The children’s apparel retailer is refreshing its products, stores, and digital experience as it tries to reconnect with younger parents.
• American Eagle: Clothing brands are facing changing consumer tastes as shoppers become more selective about style and value.
• Levi Strauss: The denim giant is expanding beyond jeans to include dresses, sweaters, and other apparel as it responds to shifting fashion trends.

The additional merchandise is part of a broader increase in H&M’s inventory heading into the holiday period.

H&M ended the third quarter with 39.36 billion Swedish kronor in stock, up from 37.94 billion kronor a year earlier, according to the company’s nine-month report.

Adjusted for currency effects, inventory was up 9%.

Stock also represented 17.8% of rolling 12-month sales, compared with 16.4% a year earlier.

For shoppers, the shift could translate into fuller racks and better availability in sizes, styles, and price points that may have been harder to find last holiday season.

H&M to increase inventory for the holiday season.

Roland Magnusson / Getty Images

More inventory and more designs, says H&M

For shoppers, H&M’s bigger inventory doesn’t necessarily mean racks filled with more of the same products.

The retailer is also trying to bring more newness into its assortment and react faster to fashion trends. 

H&M said it is significantly increasing the share of trend-sensitive merchandise it sources later in the season.

This will give the retailer more flexibility to respond to what customers are actually looking for rather than committing to products months in advance.

H&M has already tried to demonstrate that faster approach with its latest autumn and winter collection, which was shown during London Fashion Week and made available to shoppers immediately. 

Ervér said the launch drew lines outside flagship stores the following day.

Shoppers can also expect more limited-edition collaborations. 

Ervér highlighted H&M’s partnership with New York luxury label WARDROBE.NYC, along with upcoming products from designer Elie Saab and an H&M Home collaboration with interior designer Kelly Wearstler.

H&M is entering the holiday period not just with more merchandise but with a greater emphasis on new designs and products that reflect current trends.

More inventory also creates markdown risk

The inventory buildup is not entirely the result of H&M intentionally stocking more heavily for U.S. shoppers.

The company said global supply chain disruptions delayed some deliveries originally expected in the third quarter.

Changes in its European logistics network also contributed to higher inventory in transit.

H&M said the composition of its inventory remains good, and Ervér characterized some of the delayed merchandise as relatively new stock rather than aging products the company is trying to clear.

But not to forget, increased inventory during the holiday season can also pose a risk if consumer demand falls short.

Retailers often rely on promotions and markdowns to move merchandise quickly during the final months of the year.

This is especially true for apparel, where changing fashion trends can cause products to lose relevance faster.

For H&M, this will hence be a balancing act.

The retailer wants enough merchandise on hand to avoid repeating the shortages it experienced in the U.S. last year, while also avoiding ending the season with too much unsold inventory.

However, for shoppers, this translates to newer designs, improved chances of discounts, and more merchandise to choose from this holiday season.

Related: Costco shoppers are changing in a way the retailer cannot ignore