NINE MONTH REPORT 1 December 2006 – 31 August 2007

• Sales for the H&M Group excluding VAT for the first nine months of the financial year amounted to SEK 55,529 m (48,888), an increase of 14 per cent. In local currencies, the increase was 16 per cent and in comparable stores 5 per cent.

• Profit after financial items for the first nine months was SEK 12,949 m (10,368), an increase of 25 per cent. Group profit after tax was SEK 8,935 m (6,998), corresponding to SEK 10.80 (8.46) per share.

• Sales for the third quarter excluding VAT amounted to SEK 18,707 m (16,754), an increase of 12 per cent compared with the previous year. In local currencies, the increase was 14 per cent and in comparable stores 2 per cent.

• Profit after financial items for the third quarter was SEK 4,404 m (3,768), an increase of 17 per cent.

• The operating margin of 22.6 per cent is the highest ever achieved by H&M in a third quarter.

• The number of store refurbishments has doubled during the first nine months.

• The autumn collections have been well received. After a weaker August, sales have been very satisfying so far in September.

Contact persons:
Nils Vinge, IR +46-8-796 5250
Leif Persson, CFO +46-8-796 1300
Rolf Eriksen, CEO +46-8-796 5233
Switchboard +46-8-796 5500

Information about H&M and press images are available at www.hm.com