Core Insights - H&M experienced a significant increase in operating profit for Q3 2025, rising by 40% to Skr4.91bn ($518.9m), with an operating margin of 8.6% [1] - The company reported a gross profit of Skr30.14bn, resulting in a gross margin of 52.9%, an increase from 51.1% in the same quarter of the previous year [2] - Cash flow from operating activities improved to Skr9.98bn, up from Skr8.21bn a year earlier, primarily due to lower stock-in-trade [4] Sales and Store Performance - Sales in local currencies grew by 2% despite a 4% reduction in the number of stores [1] - The optimization of the store portfolio negatively impacted short-term sales due to the closure of less profitable stores, although new, more profitable stores are being opened [2] Cost Management and Margins - Selling and administrative expenses decreased by 5% to Skr25.17bn, with a 1% decline in local currencies [4] - Improvements in the supply chain and favorable external factors contributed to the enhanced gross margin, alongside exchange rate gains [3] Tax and Earnings - The result after tax increased to Skr3.21bn, or Skr2.01 per share, compared to Skr2.31bn or Skr1.44 per share in 2024 [3] - The company noted that cash flow was positively affected by lower stock-in-trade but negatively impacted by higher tax payments and lower operating liabilities [4]