H&M reports higher profit as purchasing changes and goods in transit reshape stock
H&M reported higher profit and more stock, with goods in transit part of the explanation. Inventory value does not tell the whole availability story.
H&M logo.
H&M made more profit in its latest quarter while carrying more stock. That combination is worth a closer look. In its report published on 24 September 2026, third-quarter operating profit rose to SEK 6,037 million from SEK 4,914 million, with sales up 1% in local currencies. The retailer said higher stock value partly reflected more goods in transit amid disruption and changes to its European logistics network.
Profit improved, with a qualification
H&M attributed better profitability to work on purchasing, cost control and operating efficiency. It also said the quarter’s margin benefited from a one-time effect associated with tariffs and goods imports. That qualification matters: the reported improvement should not be read as evidence that recurring trading conditions improved by exactly the same amount.
The retailer is also gradually buying more during the season to respond to demand. For smaller apparel buyers, that raises an attractive possibility and an awkward question: committing later may make the assortment more responsive, but can the supplier and transport operation deliver before the selling window closes?
Stock on a balance sheet is not necessarily stock a salesperson can promise for tomorrow. Goods may be travelling, awaiting clearance or moving between distribution sites. Keep those statuses separate from what is ready to pick. Otherwise an apparently healthy inventory figure can coexist with a very frustrating shortage at the warehouse.
For an apparel wholesaler, that distinction becomes especially important when a season is short. A carton expected before an autumn promotion may lose much of its intended value if it arrives after the campaign. The quantity has not disappeared, but the selling opportunity has changed. Review the timing of stock alongside its cost and physical location.
Purchasing closer to demonstrated demand can reduce the amount committed before customer preferences are clear. It also leaves less time to correct specifications, resolve a production problem or recover from a missed shipment. The choice is therefore a trade-off between flexibility and the capacity to execute quickly.
A smaller buyer could test later purchasing on a narrow range it already knows how to replenish. Keep a core commitment for dependable products, then limit the budget for responsive repeat orders. Record the latest useful arrival date, not just the expected arrival. That makes it easier to spot when a rushed reorder is about to solve last month’s demand with next month’s stock.
When stock rises, ask whether the business bought too much, sold less than expected or simply received goods later. Those causes need different responses. Discounting products still in transit may not solve a transport delay, while accelerating deliveries will not fix a range customers no longer want.
Use product-level records to test the explanation. Compare sales, confirmed purchase quantities, actual receipts and outstanding inbound shipments. Identify which lines are affected by late arrivals and which are ageing after receipt. A single total inventory value can hide both problems and can encourage the wrong corrective action.
More responsive buying depends on information flowing back to suppliers. Share the specifications and realistic quantities needed for a repeat order, and ask what capacity has genuinely been reserved. A short lead time promised in a discussion should be translated into an order acknowledgement with clear milestones.
Keep change control disciplined even when buying quickly. An apparently minor substitution in fabric, colour or packaging can affect the product customers receive. Agree who approves a change and how the final version is identified. Speed is useful only when the repeat delivery remains commercially usable.
The report gives apparel buyers a reason to ask a more precise question than “Are we holding too much?” Where is the stock, why is it there and when can it earn its place in the range? Goods arriving late and goods that arrived but did not sell need different decisions. Reading profit, sales and inventory together helps prevent one headline from dictating the wrong response.