second consecutive quarter of beating market expectations. “Sales grew by 2 per cent in local currencies, and this growth should be seen in the context of having 4 per cent fewer stores at the end of this quarter compared with the same period last year,” Erver told analysts during the earnings call.  “Our upgraded online store rollout earlier this year has been very well received by our customers around the world, contributing to a profitable growth in the quarter.” A fragile financial balance H&M’s improved profitability rests on a delicate balance of disciplined operations and consumer resilience. According to the executive, inventory was cut by 9 per cent, lowering the stock-in-trade to 16.4 per cent of rolling 12-month sales. Ervér credited the progress to an “improved demand planning capability” and “well-executed summer sale”, stressing that the composition of stock was now healthier with more room for improvement in the fourth quarter. He added that the new platform has made an “important contribution to the profitable growth in the quarter” by improving customer experience and creating tighter integration between online and physical channels. Still, revenue growth remains muted. For the first nine months of its fiscal year, sales in local currencies rose just 2 per cent, while operating profit slipped 5 per cent compared with last year. While efficiency gains have boosted profits, looming trade challenges could quickly erode them. H&M warned that US tariffs on imported goods will be “fully loaded” by later this year and early next, but added it would tread carefully in raising prices, mindful of fragile consumer sentiment.  Fashion credibility: London calling Numbers alone will not fix H&M’s deeper challenge: relevance. For years, critics have argued that the company’s design offerings had grown stale, struggling to inspire younger consumers in the marketplace.  Earlier this month, H&M sought to counter that perception with a cultural play: a headline-grabbing takeover of London Fashion Week.  At “H&M&180: The London Issue”, staged at the creative hub 180 The Strand, 70 models, including Romeo Beckham, Sora Choi, Paloma Elsesser, and Lila Moss, walked alongside musicians and digital creators.  The format blurred runway, concert and art installation, capped by a live performance from singer Lola Young. “The show clearly highlighted the strength of H&M collections and the creativity of our in-house design teams,” Erver said.  The show was a deliberate attempt to reposition H&M from a mass-market workhorse to a brand at the centre of culture. H&M recently ranked first out of 200 global fashion companies in Fashion Revolution’s “Who Fulfils Fashion?” transparency index, particularly in terms of decarbonisation and supply chain disclosures. While critics argue the company still faces scrutiny over overproduction, the recognition bolsters its credibility with regulators and younger consumers attuned to sustainability claims. Women first One area of strategic focus is women’s wear, which Ervér has declared is now the company’s “main priority”.  “We’re really focused on winning women first,” he told analysts. “That’s where we put the most emphasis. We see a lot of the learnings that had an effect on women’s wear will be relevant for our other customer groups as well.” Further reading: How H&M and True Religion marketing execs plan to win customer loyalty in 2025.