A：The H&M Group's third quarter results for 2026 include a strong operating profit, a return to growth of the operating margin at 10.6%, and a positive one-off effect of approximately 1.6 percentage points relating to tariffs and goods imports. The operating margin for the 12 months is now at 9%, up from 7.2 in the same time last year. Net sales increased by 1% in local currencies, and the company experienced a sales growth of Ed in September compared with the same period last year.

A：H&M focuses on product experience and brand as its strategic priorities. To support these priorities, the company has further strengthened key enablers such as developing sourcing capabilities, empowering teams closer to customers, and becoming increasingly data-driven to support better and faster decisions. They have also worked on in-season buying, improved flexibility, and increased the share of full-price sales.

A：H&M is enhancing the customer experience through their Omni model, direct relationships with customers, investments in attractive locations, and closing least productive ones. They are upgrading existing stores, expanding into new markets, using RFID technology and extended rollout of self-checkouts for an easier shopping experience, and increasing personalization across digital channels. Additionally, they continue to invest in data technology, AI, and digital and content marketing to become more efficient and personalized.

A：The financial performance of H&M Group includes a positive net sales development, an increase of 1% in local currencies. The gross margin came in at 54.3%, with a positive one-off effect of approximately 1.6 percentage points related to tariffs and goods imports. Despite external factors with a slightly negative impact due to higher transportation costs, the company maintained good cost control, and sales grew in all regions except Western Europe. Portfolio brands also returned to growth with a 3% increase in local currencies. The group's profitability and operational foundations show clear signs of progress.

A：The inventory value increased by 1.4 billion SEK by the end of the third quarter compared to the previous year, which is important to note in the context of more goods in transit due to disruptions in global supply chains and the temporary effects related to the consolidation of the European logistics network. Additionally, prudent buying in the U.S. during the second half of 2025 contributed to this inventory value increase.

A：The company has narrowed its full-year guidance for SNA growth in local currencies to the lower end of the previously guided range. They also expect a back-heavy activation profile for CapEx in Q4, which implies that the full-year CapEx will likely end at the lower end of the guided range.

A：The company's focus moving forward remains firmly on product experience and brand. Their ambition is to create an even greater customer value and continue to strengthen their customer offering. This will be achieved by increasing the speed and efficiency across the value chain, becoming more data-driven, and scaling up the use of AI.

A：The company still stands by its guidance for SNA growth, which has been narrowed down to somewhat above last year, indicating a low single-digit increase. The focus is more towards the second half of the year, particularly on the ongoing ERP work. This will likely affect SNA for the full year and continue into the coming years, specifically affecting the SNA in 2027. The positive effect in Q4 should be quite fast, with an upward impact on SNA.

A：The company has experienced different types of disruptions, including delays in global shipping supply chains due to the situation in the Middle East and challenges with air freight. These disruptions have led to some goods that were supposed to be delivered in Q4 coming into Q3, as well as the preponement of deliveries into Q4 to mitigate these delays, explaining the year-over-year increase in stock levels. The consolidation of the European warehouses is an ongoing work that will continue through Q4 and into 2023. The effects related to the closure of a warehouse in Belgium, mainly impacting southern Europe, have been felt in the beginning of Q4 but are expected to be fully mitigated by the end of the current quarter.

A：The company expects the outcomes from store openings, closures, and rebuilds to have a slightly positive effect on full year sales. The effect was slightly positive in the third quarter and is expected to continue in the fourth quarter.

A：Yes, the company is seeing more positive impact from supply chain consolidation than initially expected. The consolidation is continuing and is moving further up in the supply chain to include material suppliers. The company has a medium-term target range for gross margin and is now starting to use internal effects to add value to the product.

A：The company is currently in a gross margin interval which is seen as sustainable and is expected to contribute to mitigating the negative effects of external factors. The interval will focus on staying in place for the remainder of the year as the company continues to invest in the product offering while also shortening lead times.

A：The new organizational changes are being implemented and the company is live with the new organization across all markets, with the exception of one or two markets. The company has had several live events and is seeing early positive indications of being closer to customers and becoming more relevant. The implementation of the new organization is considered mostly complete.

A：In Q3, negative external factors led to a net negative effect worse than expected, primarily due to increased freight costs. For Q4, the guidance is for markdowns to increase year over year, with added freight costs being the key driver. Material prices are also expected to create a headwind towards the end of this year and into 2027. There is no indication of a dramatic shift with headwinds, but the magnitude is expected to remain fairly similar.

A：The shift of Cyber Monday was due to global supply chain disruptions, resulting in delays of incoming stock which is not optimal for timely customer relevance. To manage this, the company has increased its stock levels and fresh inventory is arriving to handle the partially affected quarter.

A：The shift of Cyber Monday is expected to have a positive, albeit not significant, impact on the financial year 2026 results, as it adds one more selling day in November compared to the previous year.

A：Future quarterly sales are not expected to be significantly impacted by the calendar or global supply chain disruptions, with the exception of a slight positive impact from tariff adjustments and no further adjustments related to tariffs expected in coming quarters.

A：The impact of exchange rate changes on the quarter's gross margin was neutral, whereas last year's same quarter was positively affected by exchange rate gains. This year, there was no unusual revaluation effect, indicating that last year was an outlier in terms of currency impacts.

A：The company does not expect any further adjustments related to tariffs in upcoming quarters. The structured process for tariff refunds was concluded in the last quarter of the previous year, indicating that the impacts seen last year were outliers.

A：The projected change in Opex, excluding FX, is expected to be around the mid-single-digit increase in percentage terms for Q4, which is lower than previously assumed and should be taken into account when modeling 2027 run rates.

A：There were no material effects from changes in trading days or shifts like Labor Day in the U.S. The current trading environment is normalized without any significant timing impacts. In Europe, the removal of de minimis rules has led to positive changes, creating a more equal playing field for competition, which is beneficial for customers and the industry's fragmentation is still a key characteristic.

A：The magnitude of change in buying trends is not quantified in the transcript, but it is implied that there has been a notable shift which the company is adapting to by altering its proximity sourcing strategy. The focus is on creating a more level playing field for competition, which is believed to be positive for customers and the market's fragmentation is still a key consideration.

A：The strategy involves mitigating effects of uncertainty by focusing on creating value for money and maintaining a range to maneuver in disruptions.

A：Proximity sourcing is increasing the share of fashion assortment with shorter lead times, which can also involve different types of suppliers and modes of transport to shorten lead times and respond quickly to fashion trends.

A：There is a possibility of buying more optimistically into a challenging US consumer environment, but the company had a cautious plan last year which helped cover gaps in inventory and meet customer demand.

A：The H&M brand portfolio has seen a significant improvement and outperformed, particularly focusing on cost management. Pockets of inventory gaps within price groups and garment types were addressed last quarter, and these are now covered, driving increased stock levels.

A：The H&M portfolio brands have returned to positive growth and are performing well, with a strong position in the market and consumer appreciation, leading to opportunities for store expansion.

A：The speaker mentioned that it's difficult to attribute market share gains directly to the increased duties in Europe, with mixed results across different markets like Germany and the UK.

A：The H&M brand experienced a high pace of improvement across customer groups, but the sales growth of 1% was unsatisfactory, indicating that no single customer group drove the performance to a level of satisfaction for the quarter.

A：H&M has touched its stores in various ways to ensure relevance, with upgrades in technical infrastructure, presentation, layout, and store rebuilds. These efforts have led to a positive reception and incremental sales impact, with the potential to accelerate as lessons from each store are applied to the rest of the portfolio.

A：H&M supports the view that no animals should come to harm when producing garments and is engaged in ongoing dialogue to promote sustainable practices. The company does not specify the impact of disruptions on sales but emphasizes its commitment to ethical production.

A：H&M believes in animal welfare and is committed to not allowing animals to come to harm in garment production. The company communicates this through its ongoing dialogue and partnership with industry stakeholders to develop sustainable practices.

A：H&M continues to strengthen profitability and has seen a return to sales growth. The summer offer was well-received, and the company is taking steps to build a faster, more flexible, and customer-focused business. H&M remains confident in creating long-term value for customers and shareholders, attributing the progress to committed colleagues worldwide.