H&M lifts third-quarter profit: H&M stock gains 1.03 percent

Published on 10/20/2026 at 09:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

H&M posted a 10.60 percent margin in the third quarter. H&M stock costs EUR 15.62 on October 20, 2026, 1.03 percent above Xetra close.

Profit and sales in view

H&M lifted third-quarter operating profit to SEK 6,037 million from SEK 4,914 million on September 24, 2026.
Nine-month sales reached SEK 161,624 million for the period ended August 31, 2026, versus SEK 169,064 million.
H&M stock trades at EUR 15.62 at 9:32 a.m. CEST at Lang & Schwarz on October 20, 2026, 1.03 percent above the Xetra close of October 19, 2026.

H & M Hennes & Mauritz AB, SE0000106270, Illustration mit AI erstellt.

H&M (SE0000106270) stock was trading at EUR 15.62 at Lang & Schwarz on October 20, 2026, at 9:32 a.m. CEST, up 1.03 percent versus the Xetra close of October 19, 2026. The retailer's latest report showed profit improving faster than sales.

What drove the profit improvement?

In its report dated September 24, 2026, H&M Group said third-quarter operating profit rose to SEK 6,037 million from SEK 4,914 million a year earlier. The operating margin reached 10.60 percent, compared with 8.60 percent in the same quarter of 2025.

The improvement included tariff-related effects, while cost control and purchasing efficiency also supported profitability. Reuters reported on September 24, 2026, that the result exceeded a mean LSEG forecast of SEK 5,140 million, while refunds from US tariff payments boosted the quarter.

Sales remain the test

Revenue growth was less convincing. H&M reported third-quarter net sales of SEK 57,189 million, compared with SEK 57,017 million a year earlier, while sales in local currencies increased 1.00 percent. The company also said September sales were expected to rise 1.00 percent in local currencies.

For the nine months ended August 31, 2026, net sales fell to SEK 161,624 million from SEK 169,064 million, even as operating profit increased to SEK 13,462 million from SEK 12,031 million. That split leaves the margin improvement dependent on cost discipline while the retailer works to rebuild demand.

Operating cash flow offered another positive counterpoint. It rose 19.00 percent to SEK 11,908 million in the third quarter, and nine-month operating cash flow increased 17.00 percent to SEK 26,524 million.

Profit recovery meets a sales test

The market is weighing stronger profitability against modest top-line growth. H&M's 52-week range is EUR 13.70 to EUR 18.28, while its market capitalization is EUR 25.0 billion as of October 20, 2026. The further course of trading is shown by the continuously updated real-time quote of H&M stock.