Swedish fashion retail conglomerate H&M has reported a 23 per cent increase in operating profit reaching 6.04 billion crowns for the third quarter ending August 31, 2026, outperforming market expectations. The robust financial performance was underpinned by rigorous cost control measures and an improved gross profit margin of 54.0 per cent, compared to 52.9 per cent during the corresponding period last year. Daniel Ervér, CEO, H&M Group, noted, focused enhancements within purchasing, strict expenditure containment, and increased operational efficiency have structurally strengthened the business model despite persistent macroeconomic challenges.

Expanding gross margins and accelerating in-season sourcing

The profitability expansion also benefited from one-off positive adjustments of approximately 1.6 percentage points related to tariff and goods import treatments that had previously elevated cost structures. Net sales for the quarter remained broadly stable at 57.19 billion Swedish crowns, representing a 1 per cent increase in local currencies despite trading with a 2 percent smaller store network. Leadership is actively expanding the share of in-season purchasing to react more dynamically to fast-moving style shifts, while projecting a 1 per cent local-currency sales improvement heading into September.

Focusing on digital integration and sustainable sourcing

H&M Group is a multinational fashion retailer offering apparel, cosmetics, and accessories through brands including H&M, COS, and Monki. Operating an extensive global omnichannel network across major international markets, the company focuses on digital integration and sustainable sourcing, building upon its establishment in Sweden in 1947.