H&M Exceeds Expectations in the Third Quarter: A Dimming Outlook for Autumn

The Swedish fashion giant H&M has presented its financial figures for the third quarter, surpassing analysts' expert forecasts. With an operating profit of 4.91 billion kronor, the company recorded a significant increase compared to the previous year's figure of 3.51 billion kronor during the period from June to August, thus exceeding the expected consensus from industry experts, which was 3.68 billion kronor. This improvement is attributed to a 2% sales growth in local currency. The fall fashion collections seem to be well-received by consumers, as H&M emphasized in a statement. Nevertheless, the company looks to the coming months with cautious optimism. For the month of September, stagnant sales in local currency are expected, due to various market dynamics. H&M is also paying special attention to the impact of U.S. import tariffs, which are expected to place a greater burden on the gross margin in the fourth quarter. This cautionary note comes after two weaker quarters at the beginning of the fiscal year, during which the company's profit declined.