The gross advantage for the group was SEK 30,143 million (~ 3.21 billion), which matches 51.1 to 52.9 percent in Q3 last year. Sales and administrative expenses decreased by 5 percent, SEK 25,167 million. These expenses decreased by 1 percent in local currencies.
H&M has reported an increase in sales of 2 percent in the Q3 2025 despite fewer shops, with gross margin growing by 52.9 percent and the operating profit has increased from 40 percent to 4,914 million (~ 524 million). Nine -month sales in local currencies also increased by 2 percent. Retail seller omnichannel is carrying forward development, closing 200 stores but expanding in Latin America, opening 80 in development markets.
A better customer offer, a better gross margin and good cost control have contributed to increase in profit in the quarter. The online segment was more than just 30 percent of sales; H&M said in a press release that portfolio brands increased local currencies by 1 percent despite ~ 10 percent less shops.
Regional in local currencies: Western, Southern and Eastern Europe increased ~ 3 percent; Nordics were flat; North and South America increased by 1 percent; And Asia, Oceania and Africa fell by 2 percent. The group continued to adapt its footprint, ending with 4,118 stores (-180 yoy; Net -48 in Q3).
“Through offering a strong customer, a better gross margin and good cost control, we have strengthened operating benefits compared to the same quarter of the previous year. Increase in profit shows that we are on the right path as a result of the progress made in our plan,” CEO at Daniel Ever, H&M.
For a period of nine months (9 m) (1 December, 2024 -August 31, 2025), sales in local currencies increased by 2 percent to SEK 169,064 million (~ $ 18 billion). Gross profit reached SEK 88,737 million (~ 9.45 billion) with 52.5 percent margin. Sales and administrative expenses during the 9M period were flat in SEK 76,594 million, local currencies. The operational benefit was 12,031 million for margin of 7.1 percent.
H&M is focusing on growing through an Omnichannel strategy, which provides customers to shop in stores, online, marketplace or in shops through social media. The company is investing in both physical and digital stores to improve shopping experience, upgrading layouts, presentation and technology. While more than 200 underparters – in recently established markets and including many Monci stores – will be closed in 2025, more than 80 new stores are planned, in most development markets, some Monki stores will be converted to the week.
In August, the company opened its first store and online channel in Brazil, including more stores in 2025 and 2026, including Rio de Janeiro. Similarly, Al Salvador opened in September, Venezuela Q4 in 2025, in Paraguay, and Malta in early 2026. Other brand tricks include South Korea’s 29cm.com and other stories and other stories in Zalando in October 2025, and open their first stores later this year.
As of August 31, 2025, H&M had 4,118 stores, which were below 180 since last year, 36 new openings and 171 closures in 2025 so far and 253 stores operated by franchise partners.
“With the global power of the H&M brand and a locally relevant customer offer, we have taken a significant step in a large fashion market. We see the good ability to grow somewhere else in Brazil and Latin America,” Ever said.
For Q4 2025, external factors are expected to have some extent positive effects compared to the previous year, although less favorable than Q3, as the tariff cost will be more heavy weight. The cost of Markdown as part of the sale is expected to be slightly higher since the Black Friday Falls a day before. The September sales in local currencies are estimated to be at the equal value with last year’s high base.
Fibre2fashion news desk (sg)
