Key facts
- H&M's third-quarter operating profit rose 40% to 4.91 billion crowns ($608.63 million).
- The operating profit beat analysts' mean forecast of 5.14 billion crowns.
- Sales in local currencies increased by 2% in the third quarter.
- Gross profit for the quarter was 30.14 billion crowns, with a gross margin of 52.9%.
- Selling and administrative expenses decreased by 5% to 25.17 billion crowns.
- H&M expects September sales to be up 1% in local currencies.
Swedish fashion retailer H&M reported a significant increase in its third-quarter operating profit, surpassing analyst expectations. The company's operating profit for the period ending August 31, 2025, rose 40% to 4.91 billion Swedish crowns ($608.63 million), exceeding the mean forecast of 5.14 billion crowns from an LSEG poll. This performance was driven by an improved customer offering, a higher gross margin of 52.9% (up from 51.1% a year earlier), and effective cost control, which saw selling and administrative expenses decrease by 5%.
Sales in local currencies increased by 2% in the third quarter, despite a 4% reduction in the number of stores compared to the previous year. The company also noted that its stock-in-trade decreased by 9% to 37.94 billion crowns. H&M launched its first store in Brazil in late August, which has been well-received. Looking ahead, H&M expects September sales to be up 1% in local currencies, though this is against a strong comparative period from the previous year.