Brief
H&M reports higher operating profit as cost cuts boost margins
The retailer’s third‑quarter operating margin rose to 10.6% despite modest sales growth.
By Felo News Desk · Published
H&M said its operating profit rose 23% to SEK6 billion in the third quarter ended 31 August 2026, lifting the operating margin to 10.6%, according to a report by bizcommunity.com.
Net sales for the quarter increased 1% in local currencies to SEK57.2 billion, while the store count fell about 2% from the previous year. Gross profit grew to SEK30.9 billion, with the gross margin improving to 54% from 52.9% a year earlier, helped by one‑time tariff‑related effects.
Selling and administrative expenses fell 1% to SEK24.8 billion, and profit after tax rose to SEK4.1 billion from SEK3.2 billion. Operating cash flow increased 19% to SEK11.9 billion.
CEO Daniel Ervér said the gains stem from tighter purchasing, cost control and operational efficiencies, and noted the company is moving more of its buying closer to demand by increasing in‑season purchasing.
H&M is also investing in digital infrastructure to improve precision across the value chain, from product development to sales.
Key facts
- Operating profit rose 23% to SEK6 billion in Q3 2026 (bizcommunity.com)
- Operating margin increased to 10.6% from 8.6% a year earlier (bizcommunity.com)
- Net sales grew 1% in local currencies to SEK57.2 billion (bizcommunity.com)
- Gross margin improved to 54% from 52.9% a year earlier (bizcommunity.com)
- CEO Daniel Ervér highlighted tighter cost control and in‑season purchasing (bizcommunity.com)
Sources
- [1] bizcommunity.com — originally reported as “H&M sharpens profitability with leaner costs and better operations”
