H&M's third-quarter operating profit rose 23% to SEK 6.0 billion even though sales grew only 1% in local currencies. The gain came from buying, cost control and a one-off tariff tailwind worth about 1.6 percentage points of margin.
H&M: operating profitjumps 23%as cost control pays off
H&M：营业利润大涨 23%因为成本控制见了效
PARA 01
Our work– especially within purchasing, cost control and more efficient operations –has contributed toa more profitable business.Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward,says Daniel Ervér, CEO.
我们的工作—— 特别是在采购、成本控制和更高效的运营上 ——促成了一门更赚钱的生意。虽然本季度的销售朝着积极的方向发展，但我们认为未来仍有进一步提升销售的空间，首席执行官 Daniel Ervér 如是说。
PARA 02
Net sales1increasedto SEK 57,189 m (57,017) in the third quarter.Sales in local currencies2increased by 1 percentcompared with the previous year, with around 2 percent fewer stores at the end of the quarter compared with the same point in time last year.
Library stock photo: the inside of a clothing store. H&M ended the quarter with about 2% fewer shops than a year earlier, yet local-currency sales rose 1% — meaning the average shop is doing more.无版权图库素材：一家服装门店的内部。H&M 第三季度的门店数量比去年同期少了约 2%，销售额却按当地货币计算增长了 1% —— 也就是单店贡献在提高。Photo: Unsplash · royalty-free stock image, not a news photograph.
PARA 03
Gross profitincreasedto SEK 30,867 m (30,143),which corresponds to a gross margin of 54.0 percent (52.9).3The gross margin for the quarter was positively affected by one-time effects of approximately 1.6 percentage points4from tariffs and goods imports that had increased the cost of goods sold in previous quarters.
Operating profit6increasedto SEK 6,037 m (4,914),corresponding to an operating margin of 10.6 percent (8.6).7The operating margin in the quarter was positively affected by one-time effects of approximately 1.6 percentage pointsfrom tariffs and goods imports that had increased the cost of goods sold in previous quarters.
Chart 1 | Year on year in the third quarter: net sales +0.3%, operating profit +22.9%, profit after tax +27.6%. A flat top line, a much fatter bottom line.Data: H&M Group nine-month report 2026 (Q3 = 1 June – 31 August 2026).
PARA 06
The result after taxincreasedto SEK 4,098 m (3,212),corresponding to SEK 2.58 (2.01) per share.Cash flow from operating activities8increased by 19 percentto SEK 11,908 m (9,985).
Stock-in-trade9amounted to SEK 39,355 m (37,938)and the composition of the stock-in-trade is good.The increase in the stock-in-trade is explained by the increased value of goods in transit,which is due to disruption in global supply chains as well as temporary effects from the consolidation work in the European logistics network.
Library stock photo: racks and shelving. Inventory is the swing factor in apparel retail — H&M's stock-in-trade rose to SEK 39,355 m, which the company attributes to goods still in transit rather than unsold goods.无版权图库素材：货架与挂衣区。存货是服装零售的关键科目 —— 本季存货升至 393.55 亿瑞典克朗，公司把增加归因于还在运输途中的商品，而不是卖不动的积压。Photo: Unsplash · royalty-free stock image, not a news photograph.
PARA 08
The H&M group's net salesamounted toSEK 161,624 m (169,064).In local currenciesnet saleswere in line with the first nine months of the previous financial year.
Gross profitamounted to SEK 87,050 m (88,737),which corresponds to a gross margin of 53.9 percent (52.5).Selling and administrative expensesdecreased by 4 percent to SEK 73,590 m (76,594).In local currencies these expenses were at the same level as in the previous year.
The result after taxincreased to SEK 8,765 m (7,753),corresponding to SEK 5.53 (4.86) per share.Cash flow from operating activitiesincreased by 17 percent to SEK 26,524 m (22,714).
The H&M group's sales in the month of September 2026are expected to increase by 1 percentin local currencies compared with the same month the previous year.
H&M 集团 2026 年 9 月的销售额预计增长 1%（按当地货币计算，与去年同月相比）。
PARA 13
Salesincreased by 1 percent in local currencies.Our summer collectionswere well receivedand contributed to better sales development, particularly towards the end of the quarter.At the same time, sales were affected by, among other things, continued disruptions in the logistics network in Europe and in the global supply chain.
Operating profit, including the positive one-time effect related to tariffs and goods imports,strengthened to just over SEK 6 billionand the operating margin for the last 12-month period increased to 9.0 percent.The main driving forces behind the improved profitability over the past yearisour work on purchasing, cost control and more efficient operations.
Chart 2 | Climbing, but not there yet: the operating margin went from 7.1% (first nine months of FY2025) to 8.3% (same period of FY2026) and 9.0% over the last 12 months — against a company target of 10%.Data: H&M Group nine-month report 2026; 10% margin target as cited in market commentary (TradingView / Carlsquare–Vontobel, Sept 2026).
PARA 15
Work on our digital infrastructuretook further stepsduring the quarter.Over time, thiswill giveus better precision throughout the value chain,from product development and purchasing to allocation, marketing and sales.
At the same time, we are making more decisions closer to the customeras the new simplified organisation comes into place.Weare also gradually increasingthe proportion of in-season purchasing,to more quickly meet customers' demand for fashion and quality at the best price.As we move into autumn, the composition of the stock-in-trade is good and we are well placed to meet our customers' needs.
Library stock photo: a customer choosing garments. The CEO says the group is raising the share of in-season purchasing and pushing decisions closer to the customer, to hit demand faster.无版权图库素材：一位顾客正在挑选商品。CEO 说公司在提高「当季采购」的比例、把更多决策放到离顾客更近的地方，目标是更快命中顾客的需求。Photo: Unsplash · royalty-free stock image, not a news photograph.
PARA 17
The founding family of H&M, which controls 84.91 percent of the votes,liftedits economic staketo 68.27 percent in the days before the report,feeding speculation that the retailer could be taken private.The shares have lost more than half their value since a 2015 peak, Reuters has reported, and the company is still short of the 10 percent operating margin it has set as a target.
A retailer's net sales are what customers actually paid, after discounts and returns. It is the top line of the income statement — everything else is measured against it.
Why it matters here ▸ H&M's net sales moved from SEK 57,017 m to 57,189 m — a rise of about 0.3%. Nearly all the story of this report is what happened below that line.
Extended note: Local-currency figures strip out exchange-rate moves, so they show how the shops actually performed. A gap between the two means currency translation did part of the work.
2local currencies/ˈləʊkəl ˈkʌrənsiz/点击看中文解释 ↓
“In local currencies” means the numbers are calculated as if exchange rates had not moved. It isolates how shops really traded, country by country.
Why it matters here ▸ The report gives both numbers side by side: reported +0.3%, local-currency +1%. Whenever you see a gap like that, currency translation is in it.
「按当地货币计算」（in local currencies），是指把汇率变动的影响剔除后算出来的数字，用来衡量各家门店真实的经营表现。
Extended note: Analysts look at the local-currency line for the trend, and at the reported line for what shareholders actually get. Both are in this report.
3gross margin/ɡrəʊs ˈmɑːdʒɪn/点击看中文解释 ↓
The gross margin is gross profit divided by net sales, as a percentage: what is left from each sale after the cost of the goods themselves.
Why it matters here ▸ It rose to 54.0% from 52.9%. For a clothing retailer, this line shows whether it is buying better or marking down less — before paying for staff, rents and stores.
Extended note: A rising gross margin is not automatically good news: here part of it came from tariffs that had hurt earlier quarters and did not repeat, which is why the company labels it 'one-time'.
4one-time effect/wʌn taɪm ɪˈfekt/点击看中文解释 ↓
A one-time effect is a gain or loss that will not repeat next quarter. Companies must point it out, so investors do not treat it as normal profit.
Why it matters here ▸ About 1.6 percentage points of this quarter's margin was exactly that: tariffs and imports had raised costs in earlier quarters, and the swing-back flattered Q3.
Extended note: Always ask two questions of a one-time item: how big is it, and which line does it sit in? Here it lifted both the gross and the operating margin by the same 1.6 points.
5selling and administrative expenses/ˈselɪŋ ænd ədˈmɪnɪstrətɪv ɪkˈspensɪz/点击看中文解释 ↓
Selling and administrative expenses (often shortened to SG&A) are the costs of running the shops and the company: wages, rents, marketing, head office. They sit below the gross-profit line.
Why it matters here ▸ They fell 1% to SEK 24,832 m, and in local currencies also 1%. Because sales did not fall, a smaller cost base is exactly how a flat top line turns into 23% more operating profit.
销售及管理费用（selling and administrative expenses，常缩写 SG&A），指经营门店和公司本身的开支：工资、租金、营销、总部费用等，列在毛利润之后。
Extended note: Fixed-heavy cost bases are why retailers are so sensitive to sales: when revenue stalls, cutting SG&A is the fastest way to show profit growth.
6operating profit/ˈɒpəreɪtɪŋ ˈprɒfɪt/点击看中文解释 ↓
Operating profit is what is left from sales after the costs of running the business — but before interest and taxes. In Britain it is often called operating profit; in the U.S., EBIT.
Why it matters here ▸ It rose to SEK 6,037 m from 4,914 m, a jump of about 23%. This is the number the market watches, because it shows whether the core shops are getting healthier.
Extended note: It answers one question cleanly: ignoring how the business is financed, does it make money? That is why margins and price targets are usually set on operating profit.
7operating margin/ˈɒpəreɪtɪŋ ˈmɑːdʒɪn/点击看中文解释 ↓
The operating margin is operating profit as a percentage of sales. It tells you how much profit each 100 of sales turns into, whatever the size of the company.
Why it matters here ▸ It went from 8.6% to 10.6% — and the company's own goal is 10% over the cycle. Look at the row of numbers in this report and you can see the target in sight for the first time.
Extended note: Margin expansion can come from three doors: higher prices, cheaper inputs, or spreading fixed costs over more sales. This quarter, H&M used the second and third — and borrowed a bit from the first.
8cash flow from operating activities/kæʃ fləʊ frəm ˈɒpəreɪtɪŋ ækˈtɪvɪtiz/点击看中文解释 ↓
Cash flow from operating activities is the cash the business actually generated from trading in the period — the money box, not the accounting entry.
Why it matters here ▸ It rose 19% to SEK 11,908 m. Profit can be dressed up; cash is harder to argue with, which is why analysts check this line next to profit.
经营活动现金流（cash flow from operating activities），指期内生意本身实际收到的现金净额 —— 看的是「钱箱里多了多少」，不是账面上记了多少。
拓展知识：为什么会计师算的利润和现金不是一回事：确认收入、计提折旧、存货增加，都会让账面利润与实际到账的现金出现时间差。
最经典的造假手法之一，就是利润表漂亮、现金流常年为负。所以有一句行话：利润是一种观点，现金才是事实（Profit is an opinion, cash is a fact）。
Extended note: Here cash rose faster than profit (+19% vs +23% on a smaller base), which is a healthy sign: the profit improvement is showing up in the bank account too.
9stock-in-trade/stɒk ɪn treɪd/点击看中文解释 ↓
Stock-in-trade is the value of the clothes and goods the company is holding, for a retailer its inventory. Too much means unsold goods and likely discounts; too little means empty shelves.
Why it matters here ▸ It rose to SEK 39,355 m, and the company pins the rise on goods still in transit — which is a logistics story, not a 'nobody wants to buy' story.
Extended note: A rising stock figure is not automatically bad: what matters is whether the goods are the right ones and whether they will sell at full price.
读后测验 · Check Your Understanding
3 道题。点选项立即判分；解析需要单独点开。
Q1H&M's operating profit rose about 23% while sales grew only 1%. According to the report, where did the profit come from?
正确答案：B
原文两处点名了同一组原因：CEO 说 The main driving forces behind the improved profitability over the past year is our work on purchasing, cost control and more efficient operations.，而报告正文把「关税与进口商品」的约 1.6 个百分点单独标为 one-time。A 错在「开了更多店」：原文说的是门店比去年同期少了约 2%，而且完全没有提涨价。C 把「欧洲物流网络整合」读成了「卖掉物流网络」—— 原文里它只是解释在途商品价值上升的暂时性因素，没有任何出售与收益。D 属于常见的「汇率背锅」：报告同时给出「报告口径 +0.3%」与「当地货币口径 +1%」，说明汇率影响很小，而且它影响的是销售额，与利润改善原因无关。 Our work – especially within purchasing, cost control and more efficient operations – has contributed to a more profitable business.Distractor check: A reverses the store count and invents price rises; C turns a consolidation charge into an asset sale; D confuses currency translation with profitability.
Q2The report says about 1.6 percentage points of the quarterly margin came from 'one-time effects'. Why does that label matter to a reader?
正确答案：B
「一次性」的定义就是不会自动重复。原文写法很讲究：The operating margin in the quarter was positively affected by one-time effects of approximately 1.6 percentage points from tariffs and goods imports that had increased the cost of goods sold in previous quarters. 也就是说，此前几个季度关税抬高了成本、压低过利润率，本季这个因素反向摆动，把 10.6% 这个数字抬高了一点。A 把「一次性」理解反了，属于最常见的误读。C 混淆了作用位置：它落在销货成本与毛利率那一级，而税项在营业利润之下，报告只把它挂到毛利率和营业利润率上。D 越界推断：原文只说自家口径，没有任何关于全行业关税水平的信息。 The operating margin in the quarter was positively affected by one-time effects of approximately 1.6 percentage points from tariffs and goods imports that had increased the cost of goods sold in previous quarters.Read 'one-time' as a warning label: strip it out before you extrapolate. Here roughly 1.6 of the 2.0 points of margin improvement was that swing-back.
Q3Sales in local currencies rose 1%, while reported net sales were almost flat (SEK 57,189 m vs 57,017 m). What does the gap between the two numbers tell you?
正确答案：C
报告同时给出两个口径，正是为了让读者把经营和汇率分开看：当地货币口径增长 1%，报告口径（把海外收入折算成瑞典克朗后）只增长 0.3%（57,189 对 57,017）。差额不是生意变差，而是汇率折算的结果。A 无依据：报告没有任何价格或销量的拆分，而且它还有个与原文相反的暗示 —— 毛利率其实是上升的。B 与原文相反：门店数量比去年同期少了约 2%，增长不可能来自新店。D 属于把两个不同期间混在一起：1,616.24 亿是前九个月的净销售额、去年同期为 1,690.64 亿，这一下降本身就是报告明确披露的，与「本季两个口径的差额」是两件独立的事。 Net sales increased to SEK 57,189 m (57,017) in the third quarter. Sales in local currencies increased by 1 percent compared with the previous year.Two numbers, two questions: the local-currency line tells you how the shops traded, the reported line tells you what shareholders receive after translation.
