H&M boosts profits, but sales growth remains sluggish

H&M Group is seeing its cost savings and more efficient sourcing increasingly reflected in its profits. The Swedish fashion group posted stronger-than-expected profit growth in the third quarter, while revenue remained virtually unchanged. CEO Daniel Ervér therefore sees room for improvement, particularly on the sales side.

Profit up nearly a quarter

H&M’s operating profit rose by as much as 23% in the third quarter to 6.04 billion Swedish kronor (535 million euros), also significantly more than consumers had expected. Revenue came in at 57.19 billion Swedish kronor (5.07 billion euros), virtually unchanged from the 57.02 billion Swedish kronor (5.05 billion euros) reported a year earlier. At constant exchange rates, revenue grew by 1%.