“The positive sales trend continued in the third quarter. Sales increased by 2% in local currencies during the period, while at the same time the number of stores decreased by 4% 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”, commented Daniel Ervér, CEO of H&M. 

Third Quarter Results 

In the third quarter of the 2025 financial year, the group reported a 2% increase in sales in local currencies, as compared to the same period last year, with 4% fewer stores at the end of the period. Converted into SEK, however, sales decreased by 3%, reaching 57.02 Swedish kronor (5.17 billion euros). This was due to a negative currency translation effect of around 5 percentage points caused by the strengthened Swedish krona.

H&M emphasised that its ongoing store optimisation strategy had reduced sales in the short term, with 180 fewer stores than a year ago by the end of the third quarter. However, the strategy aims to boost long-term profitability by opening more profitable locations. A highlight of the quarter was the opening of the first H&M store in Brazil, which has been very well received by customers.

In the third quarter of the current financial year, the fashion group’s gross profit increased to 30.14 billion Swedish kronor (2.734 billion euros), as compared to 30.13 billion kronor (2.733 billion euros) in the same period of the 2024 financial year. This corresponds to a gross margin of 52.9%, up from 51.1%. This increase in gross margin was due to improvements in the supply chain and external factors influencing purchasing costs. Exchange rate gains also positively impacted the gross margin in the quarter.

During this period, H&M’s selling and administrative expenses decreased by 5% year-on-year to 25.17 billion Swedish kronor (2.28 billion euros), thanks to effective cost management and despite inflationary pressures.

In the three months to the 31^st of August, the company’s operating profit increased by 40% to 4.91 billion Swedish kronor (445.5 million euros), giving an operating profit margin of 8.6% (up from 5.9%).  H&M attributed this increase to improved customer offering, improved gross margins, and effective cost management. The result after tax increased from 2.31 billion Swedish kronor (209.6 million euros) in the same period a year ago to 3.21 billion Swedish kronor (291.2 million euros).

Current Quarter

“The autumn collections have been well received”, reads the statement from the company. “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”.