According to Just Style, H&M Group reported a 23% rise in operating profit for the third quarter of fiscal 2026 (Q3 FY26), driven by one-time tariff-related refunds and improved gross margins from tighter cost controls.
Financial performance highlights
Net sales declined 4.4% across the first nine months of 2026, reflecting ongoing softness in consumer demand despite margin improvements. The profit uplift was not broad-based across all periods — the gain applied specifically to Q3 FY26 and was attributed to discrete, non-recurring factors rather than sustained top-line growth. According to the report, the H&M Group did not report any change in full-year guidance following the results.
Tariff refunds and cost discipline
A portion of the 23% operating profit increase stemmed from tariff-related refunds received during the quarter, which the source identifies as a one-time benefit. Concurrently, gross margin expansion was supported by disciplined cost management across sourcing and manufacturing operations. The report notes that these efficiency measures contributed meaningfully to profitability, though it does not quantify their individual impact beyond the aggregate 23% figure.
Context and timing
The results were published on September 24, 2026. The source states that the H&M Group’s financial reporting follows a fiscal year ending in November, making Q3 FY26 the period covering May through July 2026. No forward-looking statements or revised forecasts were included in the original announcement, and no executive commentary beyond the factual summary was provided.
Source: Just Style
Compiled from international media by the SCI.AI editorial team.
