Swedish quick style retailer H&M Hennes & Mauritz AB has reported a rise of gross sales in native currencies which rose by 2 per cent year-over-year (YoY) within the third quarter (Q3) ended August 31, 2025, with 4 per cent fewer shops on the finish of the quarter in contrast with the identical time limit final yr. The working revenue elevated by 40 per cent to SEK 4,914 million (~524 million), comparable to an working margin of 8.6 per cent.
The gross revenue for the group amounted to SEK 30,143 million (~3.21 billion), which corresponds to a gross margin of 52.9 per cent from 51.1 in Q3 final yr. The promoting and administrative bills decreased by 5 per cent to SEK 25,167 million. In native currencies these bills decreased by 1 per cent.
H&M has reported a rise of two per cent gross sales in Q3 2025 regardless of fewer shops, with gross margin rising to 52.9 per cent and working revenue surging 40 per cent to SEK 4,914 million (~524 million).
9-month gross sales additionally grew 2 per cent in native currencies.
The retailer is pushing omnichannel progress, closing 200 shops however opening 80 in progress markets, increasing in Latin America.
An improved buyer providing, an improved gross margin and good price management have contributed to the rise in revenue within the quarter. The net phase remained simply over 30 per cent of gross sales; portfolio manufacturers grew 1 per cent in native currencies regardless of ~10 per cent fewer shops, H&M mentioned in a press launch.
Regionally in native currencies: Western, Southern and Jap Europe grew ~3 per cent; the Nordics have been flat; North & South America grew 1 per cent; and Asia, Oceania and Africa declined 2 per cent. The group continued optimising its footprint, ending with 4,118 shops (-180 YoY; internet -48 in Q3).
“Through a stronger customer offering, an improved gross margin and good cost control, we have strengthened operating profit compared with the same quarter last year. The increase in profit shows that we are on the right track as a result of the progress we have made in our plan,” mentioned Daniel Erver, CEO at H&M.
For the 9 months (9M) interval (December 1, 2024–August 31, 2025), gross sales in native currencies rose 2 per cent to SEK 169,064 million (~$18 billion). The gross revenue reached SEK 88,737 million (~9.45 billion) with a 52.5 per cent margin. The promoting and administrative bills in 9M interval have been SEK 76,594 million, flat in native currencies. The working revenue was SEK 12,031 million, for a 7.1 per cent margin.
H&M is specializing in rising by means of an omnichannel technique, giving prospects the selection to buy in shops, on-line, on marketplaces, or by means of social media. The corporate is investing in each bodily and digital shops, upgrading layouts, presentation, and expertise to enhance the buying expertise. Whereas greater than 200 underperforming shops—primarily in established markets and together with many Monki shops—will shut in 2025, over 80 new shops are deliberate, principally in progress markets, with some Monki shops being transformed to Weekday, added the discharge.
In August, the corporate opened its first retailer and on-line channel in Brazil, with extra shops coming in 2025 and 2026, together with one in Rio de Janeiro. Equally, El Salvador opened in September, Venezuela will comply with in This autumn 2025, Paraguay in 2026, and Malta in early 2026. Different model strikes embrace Arket becoming a member of South Korea’s 29CM.com, & Different Tales and Arket launching on Zalando in October 2025, and COS opening its first retailer in India later this yr.
By August 31, 2025, H&M had 4,118 shops, down 180 from final yr, with 36 new openings and 171 closures up to now in 2025, and 253 shops operated by franchise companions.
“With the H&M brand’s global strength and a locally relevant customer offering, we have taken an important step into a large fashion market. We see good potential to grow both in Brazil and elsewhere in Latin America,” added Erver.
For This autumn 2025, exterior components are anticipated to have a considerably optimistic impact in contrast with final yr, although much less beneficial than in Q3, as tariff prices will weigh extra closely. The price of markdowns as a share of gross sales is anticipated to be barely greater since Black Friday falls in the future earlier. September gross sales in native currencies are anticipated to be on par with final yr’s excessive base.
