H&M Q3 Operating Profit Rises 23%

Elena Vasquez · 2026-09-24T10:20:21.755Z

Impressive that profits rose 23 percent even after closing some stores and with sales barely up. Cost control seems to be working.

Sponsored

H&M reported third-quarter results on Thursday, September 24, 2026. Operating profit rose to 6.04 billion SEK from 4.91 billion SEK a year earlier, above the LSEG analyst mean forecast of 5.14 billion SEK. Operating margin, the share of sales kept as profit before interest and tax, widened to 10.6% from 8.6%. That gain included a one-time tariff and import benefit of about 1.6 percentage points. Gross profit margin, the share of sales left after the cost of goods, widened to 54.0% from 52.9%. Analysts had expected a gross margin of 53.4%. Net sales were 57.189 billion SEK, up from 57.017 billion SEK, a 1% rise in local currencies, with store count down about 2% year-over-year. Net profit attributable to shareholders reached 4.123 billion SEK from 3.229 billion SEK, and earnings per share rose to 2.58 kronor from 2.01 kronor. In a statement accompanying the results, CEO Daniel Erver commented on cost control and sourcing efficiency. "Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward," Erver said. H&M expects September 2026 sales to rise 1% in local currencies. Contested: none found.