H & M Hennes & Mauritz AB (publ)

Q3 performance: margin strength + return to growth - Operating margin: 10.6% in Q3, including a positive one-off effect of ~1.6pp from tariffs/imports that had increased prior quarters’ COGS. - Rolling 12-month operating margin: 9% vs 7.2% prior-year period (clear improvement). - Net sales: +1% in local currencies YoY, helped by a strong summer offer (notably improving sales towards 2H), but still affected by logistic disruptions.

Regional/brand mix: growth where conditions improving, pressure in key markets - Nordics grew strongly (better consumer environment + improved offering). - All regions grew except Western Europe, with Germany and the UK still impacted by cautious consumers and high promotional activity. - Portfolio Brands returned to growth: +3% local currency, an upside vs the H&M core brand performance.

Financial drivers: gross margin resilience, but external cost pressure remains - Gross margin: 54.0% in Q3; included the tariff/import one-off (~1.6pp). - Underlying gross margin improved YoY after adjusting for tariffs/imports and last year’s FX-related outlier (revaluations on intra-group receivables/liabilities). - External headwinds: higher transportation costs were a negative; markdowns broadly in line with prior year. - SG&A: down -1% in quarter (cost control; also local currency and SEK mentioned as supportive).