H&M hits nearly one-year high after profit beat

H and M Hennes and Mauritz AB

25/09/2025 08:17

** Shares in H&M HMb.ST jump 9% to top of STOXX index .STOXX after the group posted a better-than-expected Q3 operating profit with analysts citing strong gross margin gains, leaner inventories despite softening sales momentum

** The Swedish clothing retailer's operating profit came in at 4.91 billion Swedish crowns ($523 million) in the quarter compared to SEK 3.79 billion seen in an LSEG poll of analysts

** H&M warned, however, that it expects the cost of U.S. tariffs on imports to have a bigger impact on gross margin in its fourth quarter which runs to end-November

** Jefferies says H&M's future profit could benefit from lower costs, but the net impact is uncertain due to US tariffs and planned reinvestment through 2025 and into 2026

** Citi expected the stock to react positively to the report, margin strength, and resilient trading given tough comparison figures

        ** "Regionally, Eastern and Western Europe were strong while Southern Europe and Asia were weaker sequentially," Citi noted

** The stock, at its highest since October 2024, is on track for its best day in 18 months

 (Reporting by Jesus Calero)

 ((jesus.calero@thomsonreuters.com))