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H&M reports higher profits despite stagnant sales growth
H&M reported a significant increase in operating profit for its third fiscal quarter (June–August), reaching 6.04 billion kronor. This figure exceeded analyst expectations of 5.27 billion kronor. The boost in profitability was driven by improved margins, tighter inventory management, and cost-cutting measures, as well as a one-time effect of approximately 1.6 percentage points from tariff refunds and import-related adjustments.
Despite the profit growth, sales remained relatively stagnant, rising only 1 percent in local currencies to 57.19 billion kronor. CEO Daniel Ervér noted that while summer collections were well-received, the company faces challenges such as logistics disruptions in Europe and consumer hesitation due to the cost-of-living crisis. The retailer is currently focusing on digital infrastructure and AI to improve supply chain precision and customer experience.
Looking ahead, H&M plans to optimize its physical footprint by opening approximately 90 new stores and closing around 170 existing locations throughout 2026. Analysts have noted that while the company is becoming more efficient, the lack of robust underlying sales growth remains a primary concern for investors.
Entities
Daniel Ervér · H&M · Inditex
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The operating margin reached 10.6 percent. netthandel.no
- [○ 1 SOURCE] H&M plans to open 90 new physical stores and close approximately 170 stores during the 2026 fiscal year. www.borskollen.se
- [○ 1 SOURCE] Analysts suggest the company lacks underlying growth despite profit figures. www.market.se
- [● 2 SOURCES] The operating profit for the quarter was 6 billion Swedish kronor. netthandel.no · www.borskollen.se
- [● 2 SOURCES] H&M reported net sales of 57.2 billion Swedish kronor for the third quarter. netthandel.no · www.borskollen.se
- [○ 1 SOURCE] Online sales account for just over 30 percent of total turnover. netthandel.no