Hennes & Mauritz (HM) Q3 2025 earnings summary

Executive summary

• Sales grew by 2% in local currencies in Q3 2025, despite a 4% reduction in store count year-over-year.

• Operating profit increased 40% in Q3 to SEK 4,914m, with an operating margin of 8.6%, up from 5.9% last year.

• Inventory levels decreased by 9% compared to last year, reflecting improved demand planning and successful summer sales.

• The upgraded online store rollout and strong omnichannel performance contributed to profitable growth and improved customer experience.

• Expansion into Brazil and Latin America is progressing, with strong customer reception and further store and online openings planned.

Financial highlights

• Q3 net sales: SEK 57,017m (down from SEK 59,011m); nine months: SEK 169,064m (down from SEK 172,285m).

• Q3 operating profit: SEK 4,914m (margin 8.6%); nine months: SEK 12,031m (margin 7.1%).

• Q3 gross profit: SEK 30,143m (margin 52.9%); nine months: SEK 88,737m (margin 52.5%).

• OpEx decreased by 1% in local currency, driven by efficiency improvements in store operations and logistics.

• Cash flow from operating activities: SEK 9,985m in Q3, SEK 22,714m for nine months.

Outlook and guidance

• September sales expected to be on par with last year, despite high comparatives.

• Q4 guidance indicates external factors (currency, freight, tariffs) will have a slightly positive but smaller net effect than in Q3.

• Markdowns as a percentage of sales in Q4 expected to be higher due to Black Friday timing.

• Store portfolio optimization will continue, with more details on 2026 to be provided in the Q4 report.

• Continued focus on omnichannel expansion and store portfolio optimization.