On September 24, 2026, H&M Group published its nine-month report, covering the third quarter that ended August 31. The Stockholm-listed retailer, the world’s second-largest listed fashion company, said quarterly operating profit rose 23 percent to 6.04 billion Swedish kronor, up from 4.91 billion a year earlier. The update was closely watched as a gauge of whether H&M’s multi-year effort to rebuild profitability is gaining traction.
Net sales came in at 57.19 billion kronor, an increase of about 1 percent in local currencies and roughly flat against the same period in 2025. The bigger story was profitability. The gross margin widened to 54 percent from 52.9 percent, helped by better buying, cost control and more efficient operations, the company said. The result came in ahead of analysts’ profit forecasts, and the margin gain suggested the group’s cost and sourcing discipline was reaching the bottom line.
Chief executive Daniel Ervér framed the quarter as evidence that the turnaround is taking hold. “Our work within purchasing, cost control and more efficient operations has contributed to a more profitable business,” he said, while adding that the group still sees room to lift sales in the months ahead. Ervér, who took the top job in early 2024, has centered his agenda on product, brand perception and store experience.
Over the first nine months of the financial year, operating profit reached 13.46 billion kronor, up from 12.03 billion, even as nine-month net sales slipped to 161.6 billion kronor. For the near term, H&M guided for September sales to rise about 1 percent in local currencies, a cautious signal on demand as the autumn season begins. The company offers a single month of forward visibility rather than full-year targets.
Despite the sharp rise in profit, the share price came under pressure, with investors focused on the slow pace of sales growth as H&M competes with Inditex’s Zara and fast-growing online rivals. The results underline a strategy built on margins, disciplined costs and product improvement rather than rapid expansion. For a group that once relied on opening stores to drive growth, the quarter reflected a broader shift toward tighter inventories, online demand and profitability over scale.
