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.

• Net sales in SEK were negatively impacted by currency effects, down 3% in Q3.

• Strong customer response to new store openings, notably in Brazil and Paris, and continued digital channel growth.

• Sustainability leadership recognized, ranking first in public disclosure on decarbonization and transparency among 200 major fashion brands.

Financial highlights

• Q3 net sales: SEK 57,017m (down from SEK 59,011m); Q3 gross profit: SEK 30,143m (margin 52.9%).

• Inventory decreased by 9% year-over-year, reflecting improved demand planning and successful summer sales.

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

• Digital business contributed strongly to profit growth, supported by a revamped online experience and lower return rates.

• Cash flow from operating activities: SEK 9,985m in Q3.

Outlook and guidance

• September sales expected to be flat year-over-year, with high comparatives from last year.

• Q4 external factors (currency, freight, raw materials) expected to be slightly positive but less so than Q3; tariffs to be a headwind.

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

• Store portfolio optimization ongoing, with further details on 2026 to be provided in the Q4 report.