Fashion
H&M’s Q3 profit beats estimates, warns of Q4 margin pressure
By
Reuters
Published
September 25, 2025
Swedish fashion group H&M posted stronger-than-expected third-quarter results on Thursday, reporting a sharp rise in operating profit. However, the retailer also warned of rising tariff-related costs and forecasted flat sales in September, indicating continued margin pressure ahead.
Operating profit for the June–August period reached 4.91 billion Swedish crowns ($523 million), up from 3.51 billion a year earlier and surpassing the average forecast of 3.68 billion Swedish crowns in a poll by LSEG analysts. This was supported by a 2% increase in local-currency sales.
“The autumn collections have been well received,” H&M said in a statement.
Despite this positive trend, H&M cautioned that U.S. tariffs on imports are expected to have a larger impact on gross margin in the current quarter, which runs through the end of November.
In contrast, H&M experienced profit declines during the first two quarters of its fiscal year.
($1 = 9.3940 Swedish crowns)
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