second half of this quarter,” he told analysts. Nonetheless, shares fell about 3 per cent when trading opened in Stockholm on September 24.  A flat year so far Over the first nine months of H&M’s financial year, from December to August, sales totalled SEK 161.6 billion, down 4 per cent in krona and unchanged in local currencies. Operating profit rose 12 per cent to SEK 13.5 billion. The company has been trimming its store network. H&M Group ended the quarter with 4023 stores, 95 fewer than last year. Online now makes up just over 30 per cent of sales. “Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward,” Ervér said in the company’s report. Where it sold more, and where it did not “In local currencies, sales grew in all regions except Western Europe, and here market conditions continued to be affected by cautious consumers and a high level of promotional activity, particularly in Germany and the UK,” Adam Karlsson, CFO at H&M Group, said. The Nordics, H&M’s home region, grew fastest, up 6 per cent in local currencies to SEK 5.6 billion, which Karlsson put down to “a stronger consumer environment” and a better product offer. Western Europe, the largest region at SEK 19.4 billion and about a third of group sales, fell 1 per cent. Ervér told Reuters that shoppers there had been under pressure for a long time, and that closing a warehouse in Belgium had also cost sales. Southern and Eastern Europe each grew 1 per cent. North and South America, the second-largest region, rose 1 per cent to SEK 12.5 billion. H&M opened its first two stores in Paraguay in the quarter and will enter Argentina through a franchise partner in 2027. The Americas also delivered the biggest profit gain, with operating profit up about 76 per cent to SEK 1.96 billion over nine months, likely helped by the US tariff refund.  Asia: Fewer stores, more sales The Asia, Oceania and Africa region grew 4 per cent in local currencies in the third quarter, second only to the Nordics, while H&M kept cutting its store base there faster than anywhere else. The region ended August with 886 stores, 81 fewer than a year earlier, an 8 per cent reduction. Of the 78 net store closures H&M made group-wide in the first nine months, 54 were in Asia, Oceania and Africa, roughly 70 per cent of the total. For 2026 as a whole, the group plans to open about 90 stores and close about 170, with most openings in what it calls growth markets. Portfolio brands back in growth H&M’s other labels, which it calls portfolio brands, did better than the group.  “It is also positive to see that portfolio brands return to growth as sales increased by 3 per cent in local currencies,” Karlsson said. Excluding Monki, whose stores closed in 2025, they grew 4 per cent, although they remain down 2 per cent over nine months. H&M does not publish sales by brand, but store numbers show where it is investing. Cos, its upmarket minimalist label, had 257 stores, 19 more than a year earlier. Arket grew to 59 stores from 42 and opened in Lithuania this quarter. Weekday, which now includes Monki, held at 44, and & Other Stories at 65. The core H&M brand still accounts for about nine in ten stores, but its count fell by 101 to 3,579. Standalone H&M Home stores dropped to 19 from 32, though the range also sits inside 471 H&M stores. What comes next “For September, we expect a sales growth of 1 per cent compared with the same period last year,” Ervér said. The final quarter, to 30 November, is unlikely to look as strong. There will be no tariff refund, and H&M expects to spend more on discounts because the Black Friday period has grown longer. Higher shipping costs linked to the Middle East conflict add further pressure. Further reading: Why Asia is H&M’s testing ground for a new model of physical retail.