Swedish fashion giant H&M on Thursday reported a sharp rise in net profit in the third quarter but warned US tariffs were expected to bite later this year.
H&M said its net profit rose to 3.2 billion kronor ($340 million) for the June-to-August period, compared to 2.3 billion kronor a year earlier.
Operating profit rose to 4.9 billion kronor, up from 3.5 billion kronor in the third quarter of 2024, even with four per cent fewer stores.
鈥楾hrough a stronger customer offering, an improved gross margin and good cost control, we have strengthened operating profit compared with the same quarter last year,鈥� CEO Daniel Erver said in a comment.
Sales fell from 59 billion kronor to 57 billion kronor due to a stronger Swedish currency. They were were two per cent in local currencies.
The company warned that that tariff costs were expected to have an 鈥榠ncreased impact鈥� in the fourth quarter.聽
