INTERIM REPORT 1 December 1999 – 31 August 2000

The period in brief:

• Group turnover for the nine months period amounted to SEK 25,428 M
(SEK 23,549 M), an increase of 8 per cent compared with the same period
last year. In comparable currencies 13 per cent.

• Profit after financial items was SEK 2,613 M (SEK 3,209 M), a
decrease of 19 per cent compared with the same period last year, mainly
due to price reductions, larger than usual, of SEK 375 M.

• Turnover for the third quarter amounted to SEK 8,186 M (SEK 7,866
M), an increase of 4 per cent (in comparable currencies 7 per cent)
compared with the third quarter 1999. Profit after financial items was
SEK 800 M (SEK 1,160 M).

• Measures to reduce costs have had an effect during the third
quarter. Operating expenditures will be reduced by SEK 500 M on an
annual basis.

• The balance of the assortment mix – the relation between very high
and basic fashion – has been corrected.

• Customer response in the USA continues to exceeded expectation.

• The autumn collection has been well received. Q4 sales has started
well.

Contact persons:

Rolf Eriksen
+46 8 796 5233

Jan Jacobsen
+46 8 796 5401

Carl-Henric Enhörning
+46 8 796 5410

Leif Persson
+46 8 796 1300

H&M switchboard
+46 8 796 5500