H&M stock gains 1.22 percent as profit margin reaches 10.6 percent

Published on 10/07/2026 at 14:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

H&M stock posted SEK 6,037 million in third-quarter operating profit on September 24, 2026, up from SEK 4,914 million. The average analyst target is SEK 156.21.

H & M Hennes & Mauritz AB, SE0000106270, Illustration mit AI erstellt.

H&M stock (ISIN SE0000106270) was trading at SEK 162.25 on Nasdaq Stockholm on October 7, 2026, at 2:32 p.m. CEST, up 1.22 percent from the prior close of SEK 160.30. The latest company report showed a sharp profit improvement, but sales growth remained limited.

Profit margin reaches 10.6 percent

According to H&M Group on September 24, 2026, third-quarter operating profit increased to SEK 6,037 million from SEK 4,914 million in the same quarter of the previous year. That lifted the operating margin to 10.6 percent from 8.6 percent.

Net sales reached SEK 57,189 million in the quarter ended August 31, 2026, compared with SEK 57,017 million a year earlier. Sales in local currencies increased 1 percent, while the company reported 2 percent fewer stores than a year earlier.

The margin improvement was not entirely recurring. H&M said a one-time effect related to tariffs and goods imports contributed 1.6 percentage points to the quarterly gross margin, which reached 54.0 percent compared with 52.9 percent a year earlier.

Cash flow strengthens alongside earnings

The nine-month figures provide a broader view of the improvement. Operating profit for the period from December 1, 2025, to August 31, 2026, rose to SEK 13,462 million from SEK 12,031 million, while the operating margin increased to 8.3 percent from 7.1 percent, according to Nasdaq Stockholm.

Operating cash flow rose 17 percent to SEK 26,524 million in the first nine months, compared with SEK 22,714 million in the prior-year period. Net sales, by contrast, declined to SEK 161,624 million from SEK 169,064 million, although local-currency sales were level with the previous year.

Consensus remains below the share price

The valuation picture is more cautious than the earnings figures. MarketScreener listed an Underperform consensus from 26 analysts, with an average target of SEK 156.21 and a last-close reference of SEK 166.20 on September 23, 2026. The average target is SEK 6.04 below H&M's October 7 trading price.

That gap puts the focus on whether margin gains can persist after the tariff-related benefit. H&M also cited logistics disruptions and supply-chain effects, while September sales were projected to increase 1 percent in local currencies.

H&M stock trades above yearly low

H&M stock was trading between SEK 160.00 and SEK 162.75 during the October 7 session. Its 52-week range runs from SEK 156.35 to SEK 194.30, leaving the share SEK 5.90 above the yearly low and SEK 32.05 below the yearly high.