H&M falls as analysts look past tariff-boosted Q3 profit

By Reuters News07:42 (UTC), 24 September 2026 Updated

** Shares in H&M HMb.ST fall 3% after the Swedish fashion retailer's Q3 results, as analysts look through a headline profit beat that was largely driven by one-off tariff refunds

** Operating profit in the third quarter rose to 6.04 billion Swedish crowns ($608.63 million) from 4.91 billion a year earlier, above an LSEG consensus of SEK 5.14 billion

** J.P.Morgan says EBIT excluding tariff refunds was SEK 5.12 billion, "bang in line" with consensus, while SB1 Markets similarly says the roughly SEK 900 million refund explains most of the reported profit beat

** "In our view, a better understanding of the gross margin bridge – and implications for the outlook – is key for the conference call," JPM says

** The broker says the gross-margin miss could send the shares lower despite better-than-expected current trading

** "The other area of slight concern is the elevated inventory position which rose 9% yoy ex-FX," JPM adds

** Jefferies also flags that underlying gross margin missed expectations, while good cost control kept underlying profit broadly in line

** H&M share price is at its lowest in more than four months