(more information and CEO comments)
Clothing company H&M reports revenue in line with expectations for the third quarter. Operating profit was better than expected.
Revenue rose 0.3 percent to SEK 57,189 million (57,017). This compares with Modular Finance’s analyst consensus of SEK 57,120 million. In local currencies, sales rose 1 percent.
“Our summer collections were well received and contributed to improved sales growth, particularly during the latter part of the quarter. At the same time, sales were affected, among other things, by continued disruptions in the logistics network in Europe and in the global supply chain,” comments CEO Daniel Ervér.
Gross profit was SEK 30,867 million (30,143), versus an expected SEK 30,476 million, with a gross margin of 54.0 percent (52.9).
Operating profit was SEK 6,037 million (4,914), versus an expected SEK 5,095 million. The operating margin was 10.6 percent (8.6). According to the company, the operating margin during the quarter was positively affected by one-off effects of approximately 1.6 percentage points from tariffs and imports of goods that had increased
cost of goods sold in previous quarters.
Profit after tax was SEK 4,098 million (3,212).
Earnings per share amounted to SEK 2.58 (2.01).
Cash flow from operating activities amounted to SEK 11,908 million (9,985).
Inventories amounted to SEK 39,355 million (37,938), with a composition described as good. The higher inventory is due to an increased value of goods in transit as a result of disruptions in global supply chains, as well as temporary effects from the consolidation efforts in the European logistics network.
“We are entering the autumn with a good inventory composition and favorable conditions to meet our customers’ needs,” Ervér says regarding the outlook.
As for sales after the end of the period, that is, during the current month of September, these are expected to increase by 1 percent in local currencies compared with the previous year.
H&M, SEK millionQ3-2025/2026ConsensusChange vs consensusQ3-2024/2025ChangeNet sales57,18957,1200.1%57,0170.3%Gross profit30,86730,4761.3%30,1432.4%Gross margin54.0%53.4%52.9%Operating profit6,0375,09518.5%4,91422.9%Operating margin10.6%8.9%8.6%Net profit4,0983,21227.6%Earnings per share, SEK2.582.0128.4%Cash flow from operating activities11,9089,98519.3%Consensus data from Modular Finance
