Hennes & Mauritz AB: H & M Hennes & Mauritz AB Nine-month report 2026

"Our work - especially within purchasing, cost control and more efficient operations - has contributed to a more profitable business. Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward," says Daniel Ervér, CEO

Third quarter (1 June 2026- 31 August 2026)

• Net sales increased to SEK 57,189 m (57,017) in the third quarter. Sales in local currencies increased by 1 percent compared with the previous year, with around 2 percent fewer stores at the end of the quarter compared with the same point in time last year.
• Gross profit increased to SEK 30,867 m (30,143), which corresponds to a gross margin of 54.0 percent (52.9). The gross margin for the quarter was positively affected by one-time effects of approximately 1.6 percentage points from tariffs and goods imports that had increased the cost of goods sold in previous quarters.
• Selling and administrative expenses decreased by 1 percent to SEK 24,832 m (25,167). In local currencies these expenses decreased by 1 percent.
• Operating profit increased to SEK 6,037 m (4,914), corresponding to an operating margin of 10.6 percent (8.6). The operating margin in the quarter was positively affected by one-time effects of approximately 1.6 percentage points from tariffs and goods imports that had increased the cost of goods sold in previous quarters.
• The result after tax increased to SEK 4,098 m (3,212), corresponding to SEK 2.58 (2.01) per share.
• Cash flow from operating activities increased by 19 percent to SEK 11,908 m (9,985).
• Stock-in-trade amounted to SEK 39,355 m (37,938) and the composition of the stock-in-trade is good. The increase in the stock-in-trade is explained by the increased value of goods in transit, which is due to disruption in global supply chains as well as temporary effects from the consolidation work in the European logistics network.

Nine months (1 December 2025- 31 August 2026)

• The H&M group's net sales amounted to SEK 161,624 m (169,064). In local currencies net sales were in line with the first nine months of the previous financial year.
• Gross profit amounted to SEK 87,050 m (88,737), which corresponds to a gross margin of 53.9 percent (52.5).
• Selling and administrative expenses decreased by 4 percent to SEK 73,590 m (76,594). In local currencies these expenses were at the same level as in the previous year.
• Operating profit increased to SEK 13,462 m (12,031), corresponding to an operating margin of 8.3 percent (7.1).
• The result after tax increased to SEK 8,765 m (7,753), corresponding to SEK 5.53 (4.86) per share.
• Cash flow from operating activities increased by 17 percent to SEK 26,524 m (22,714).

Current quarter sales

• The H&M group's sales in the month of September 2026 are expected to increase by 1 percent in local currencies compared with the same month the previous year.
  

Comments by Daniel Ervér, CEO

Our work - especially within purchasing, cost control and more efficient operations - has contributed to a more profitable business. Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward.

Sales increased by 1 percent in local currencies. Our summer collections were well received and contributed to better sales development, particularly towards the end of the quarter. At the same time, sales were affected by, among other things, continued disruptions in the logistics network in Europe and in the global supply chain.

Operating profit including the positive one-time effect related to tariffs and goods imports strengthened to just over SEK 6 billion and the operating margin for the last 12-month period increased to 9.0 percent. The main driving forces behind the improved profitability over the past year is our work on purchasing, cost control and more efficient operations.

Work on our digital infrastructure took further steps during the quarter. Over time, this will give us better precision throughout the value chain, from product development and purchasing to allocation, marketing and sales. At the same time, we are making more decisions closer to the customer as the new simplified organisation comes into place.

We are also gradually increasing the proportion of in-season purchasing, to more quickly meet customers' demand for fashion and quality at the best price. Over time, this strengthens our position as a natural destination for both the latest fashion and timeless, updated key pieces. Through a more optimised store portfolio, more upgraded stores and a more personal digital experience, we are also elevating the customer experience as well as productivity in store and online.

As we move into autumn, the composition of the stock-in-trade is good and we are well placed to meet our customers' needs. At a time when consumers are affected by high living costs, we are gradually strengthening our customer offering through attractive and inspiring products, shopping experiences and brands. Initiatives in the supply chain, greater support from AI and committed employees allow us to increase relevance and precision throughout the business - which will help deliver even greater value for our customers.

Communication in conjunction with the nine-month report

The nine-month report, 1 December 2025 - 31 August 2026, will be published at 08:00 CEST on 24 September 2026. A webcast and telephone conference will follow at 09:00 CEST and will be held in English for the financial market and media. Participants will be CEO Daniel Ervér, CFO Adam Karlsson and Head of IR Joseph Ahlberg.

Webcast

Register via this link to follow the webcast and view the presentation: https://edge.media-server.com/mmc/p/oeq5wq3y

To ask a question

Join by telephone to be able to ask a question, please register here: https://register-conf.media-server.com/register/BIee0caaf3d5d143dfa2e5d66babb8fbc5

Interviews for media

To book interviews for media in conjunction with the nine-month report on 24 September 2026, please contact: Anna Frosch Nordin, Head of Media Relations, telephone [phone], [e-mail].

Contact

Joseph Ahlberg, Head of IR	[phone]
Daniel Ervér, CEO	[phone] (switchboard)
Adam Karlsson, CFO	[phone] (switchboard)

H & M Hennes & Mauritz AB (publ)
SE-106 38 Stockholm
Phone: [phone], e-mail: [e-mail]
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 24 September 2026. 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.