Fashion retailer H&M clearly exceeded analysts' expectations in the third quarter, setting an important signal for its ongoing realignment. Operating profit amounted to 4.9 billion kronor (approximately 445 million euros), well above the forecasted 3.7 billion kronor. The operating margin improved to 8.6 percent, indicating that the extensive cost-saving measures and efficiency programs of recent months are paying off.

Even in terms of revenue, the company remained solid: net sales increased to 57 billion kronor (5.17 billion euros) in the three months ending in August, largely meeting market expectations. H&M has recently streamlined its cost structure, optimized the number of stores, and expanded its marketing expenses to strengthen its core brand and more closely engage customers.

With the unexpectedly high profit, the company signals that after a phase of weak demand and tough competition, it is back on track – and can sustainably improve its profitability. Investors and analysts consider the figures as a sign that the restructuring is bearing fruit.