H&M Q3 Operating Profit Rises 23%

H&M reported third-quarter operating profit of 6.04 billion Swedish kronor, up from 4.91 billion a year earlier and above analyst expectations, as its operating margin widened to 10.6% from 8.6%. The improvement included a one-time boost of about 1.6 percentage points from tariff and import-related effects that had raised costs in previous quarters, alongside lower selling and administrative expenses. Net sales edged up to 57.19 billion kronor, a 1% increase in local currencies, despite the retailer operating about 2% fewer stores. H&M expects September sales to rise 1% in local currencies, while warning that fourth-quarter markdown costs may increase as a share of sales.