Third quarter (1 June 2025 - 31 August 2025)
Sales in local currencies increased by 2 percent in the third quarter, with 4 percent fewer stores at the end of the quarter compared with the same point in time last year. Converted into SEK, net sales amounted to SEK 57,017 m (59,011). Net sales in SEK were negatively affected by a currency translation effect of around 5 percentage points due to the strengthened Swedish krona.
Gross profit amounted to SEK 30,143 m (30,133), which corresponds to a gross margin of 52.9 percent (51.1).
Selling and administrative expenses decreased by 5 percent to SEK 25,167 m (26,602). In local currencies these expenses decreased by 1 percent.
Operating profit increased by 40 percent to SEK 4,914 m (3,507), corresponding to an operating margin of 8.6 percent (5.9). An improved customer offering, an improved gross margin and good cost control have contributed to the increase in profit in the quarter.
The result after tax increased to SEK 3,212 m (2,3061), corresponding to SEK 2.01 (1.441) per share.
Cash flow from operating activities increased to SEK 9,985 m (8,215).
The stock-in-trade decreased by 9 percent to SEK 37,938 m (41,738) and the composition of the stock-in-trade is assessed to be good. Currency adjusted the stock-in-trade decreased by 3 percent compared with the previous year. The stock-in-trade in SEK represented 16.4 percent (17.8) of rolling 12 months sales.
H&M opened its first store as well as online in Brazil at the end of August, which has been very well received by customers.
Nine months (1 December 2024 - 31 August 2025)
In local currencies net sales increased by 2 percent in the first nine months of the financial year. Converted into SEK, the H&M group's net sales amounted to SEK 169,064 m (172,285).
Gross profit amounted to SEK 88,737 m (91,357). This corresponds to a gross margin of 52.5 percent (53.0).
Selling and administrative expenses amounted to SEK 76,594 m (78,612). In local currencies these expenses were on par with the previous year.
Operating profit amounted to SEK 12,031 m (12,682), corresponding to an operating margin of 7.1 percent (7.4).
The result after tax amounted to SEK 7,753 m (8,6011), corresponding to SEK 4.86 (5.351) per share.
Cash flow from operating activities amounted to SEK 22,714 m (24,782).
The autumn collections have been well received. In local currencies the H&M group's sales in the month of September 2025 are expected to be on par with the same month last year. Sales development in September 2025 should be seen in the light of high comparative figures from last year.
H&M ranks as number 1 out of 200 fashion companies in the latest What Fuels Fashion? report by Fashion Revolution, which evaluates companies transparency on decarbonisation and other sustainability areas.
"We are taking further steps in the right direction. Through a stronger customer offering, an improved gross margin and good cost control, we have strengthened operating profit by 40 percent compared with the same quarter last year while also having reduced the stock-in-trade," says Daniel Ervér, CEO.
1. See note 5.
Comments by Daniel Ervér, CEO
The positive sales trend continued in the third quarter. Sales increased by 2 percent in local currencies during the period, while at the same time the number of stores decreased by 4 percent at the end of the quarter compared with the same point in time last year.
Through a stronger customer offering, an improved gross margin and good cost control, we have strengthened operating profit compared with the same quarter last year. The increase in profit shows that we are on the right track as a result of the progress we have made in our plan.
This is also reflected in the reception we received on the launch of H&M in Brazil in August. With the H&M brand's global strength and a locally relevant customer offering, we have taken an important step into a large fashion market. We see good potential to grow both in Brazil and elsewhere in Latin America.
In September we opened a new flagship store in Le Marais, Paris, with a specially curated assortment, presentation and interior design concept. This is a good example of how we are developing the customer experience but also strengthening our brand. Another example is the upgrade of our digital store that was rolled out earlier this year. We are getting positive feedback from our customers and can see that the digital store has made an important contribution to the profitable growth in the quarter. We continue to focus fully on updating a large part of our stores globally, with improvements in layout, presentation and tech to further enhance the customer experience, while at the same time the physical and digital channels strengthen and complement each other.
In an environment of ongoing uncertainty with cautious consumers, all of us within the H&M group are consistently focusing on our customer offering - always giving the best value for money. Our strong culture, together with good cost control and flexibility, allows us to continue building a stable foundation for long-term, profitable and sustainable growth in an increasingly complex environment, while taking additional important steps towards our ambitious sustainability goals.
Communication in conjunction with the nine-month report
The nine-month report, i.e., 1 December 2024 - 31 August 2025, will be published at 08:00 CEST on 25 September 2025, followed by a telephone conference at 09:00 CEST for the financial market and media. The telephone conference will be held in English, hosted by CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.
For log in details for the telephone conference please register via this link: https://app.webinar.net/AyMP5R65YbW
To book interviews for media in conjunction with the nine-month report on 25 September 2025, please contact: Anna Frosch Nordin, Head of Media Relations, telephone +46 73 432 93 14, anna.froschnordin@hm.com.
Contact
Joseph Ahlberg, Head of IR +46 73 465 93 92
Daniel Ervér, CEO +46 8 796 55 00 (switchboard)
Adam Karlsson, CFO +46 8 796 55 00 (switchboard)
H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: +46 8 796 55 00, e-mail: info@hm.com
Registered office: Stockholm, Reg. No. 556042-7220
For more information about the H&M group visit hmgroup.com.
Information in this interim report is that which H & M Hennes & Mauritz AB (publ) is required to disclose under the EU Market Abuse Regulation (EU) No 596/2014. The information was submitted for publication by the abovementioned persons at 08:00 (CEST) on 25 September 2025. This interim report and other information about the H&M group are available at hmgroup.com.
H & M HENNES & MAURITZ AB (PUBL) was founded in Sweden in 1947 and is listed on Nasdaq Stockholm. H&M's business idea is to offer fashion and quality at the best price in a sustainable way. The group's brands are H&M (including H&M HOME, H&M Move and H&M Beauty), COS, Weekday (including Cheap Monday and Monki), & Other Stories, ARKET, Singular Society and Sellpy. The group also includes several ventures. For further information, visit hmgroup.com.
