Fast-fashion retailer H&M group closed 135 stores, but its profits and stock are soaring. Here's why

"On Wednesday, September 24, the retailer released its third-quarter earnings and reported an operating profit of 4.9 billion Swedish krona ($521 million). Its operating profit marked a 40% increase year-over-year (YOY) and beat analysts' predicted 3.7 billion Swedish krona ($393 million), according to consensus estimates cited by CNBC."

"Despite the concerning forecast, investors responded positively to H&M group's current earnings. Trading on the Stockholm Stock Exchange, the company's share price (STO:HM-B) jumped 10% through after-hours and into premarket trading Thursday morning. Other factors could have contributed to the boost in share prices. The H&M group reported that sales in local currencies had increased by 2% during the quarter."

"However, the company notably reduced its store count over the previous nine months. As of August 31, the H&M group had 4,118 stores, compared to 4,298 at the same point last year. The company closed 135, or 4%, of its store locations over the first nine months of the fiscal year, 48 in quarter-three alone. A majority of the closures were H&M and Monki stores in Europe, Asia, Oceania, and Africa. Only five stores shut down throughout North and South America."

H&M Group reported third-quarter operating profit of 4.9 billion Swedish krona ($521 million), a 40% year-over-year increase that beat analysts' consensus of 3.7 billion SEK. The result marked consecutive quarterly outperformance after also beating estimates in quarter two. The company cautioned that increased tariff impacts could make fourth quarter 2025 less positive. Investors reacted positively: shares on the Stockholm exchange jumped 10% in after-hours and premarket trading. Sales in local currencies rose 2% during the quarter. The group reduced its store count to 4,118 from 4,298 a year earlier, closing 135 stores over nine months; most closures affected H&M and Monki across Europe, Asia, Oceania, and Africa, while five closed in the Americas. A newly opened first store in Brazil was well received.

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