INTERIM REPORT – NINE MONTHS 1 December 2001 – 31 August 2002

• H&M’s Group turnover amounted to SEK 37,369 m, an increase of 15 per cent. In comparable currency rates the increase was 14 per cent.

• Turnover for the third quarter amounted to SEK 12,664 m, an increase of 15 per cent compared with last year. In comparable currency rates the increase was 17 per cent.

• Profit after financial items was SEK 5,225 m, an increase of 55 per cent.

• Third quarter profit after financial items amounted to SEK 1,906 m, an increase of 53 per cent.

• Improved results in all countries. Very positive development in France, the USA and Spain.

• Higher stock turnover rate through shorter lead times and a more even flow of garments.

Turnover

Turnover including VAT for the H&M Group increased during the nine
months period by 15 per cent (in comparable currency rates 14 per cent),
compared with the same period last year and reached SEK 37,369.1 m
(32,356.2).

Turnover in the third quarter amounted to SEK 12,663.6 m (10,964.9), an
increase of 15 per cent (in comparable currency rates 17 per cent).

Turnover increase in the month of August was 16 per cent in comparable
currency rates.

In the nine months period, the Group has opened 46 new stores; ten in
Germany, nine in France, seven in the USA, five each in the United
Kingdom and Austria, three in Belgium, two in the Netherlands and one in
Sweden, Norway, Denmark, Finland and Luxembourg respectively. As a
result of relocations, five stores have been closed in Germany and one
each in the United Kingdom, Switzerland and Belgium. The total number of
stores at the end of the period was 809 (736).

Result for the nine months period

Gross profit for the nine months period reached SEK 17,189.8 m
(13,880.9), corresponding to 53.9 per cent (50.3) of the turnover.

After deduction for administrative and selling expenses, operating
profit was SEK 4,968.5 m (3,184.3). This result corresponds to an
operating margin of 15.6 per cent (11.5).

Operating profit for the period has been charged with depreciation
according to plan amounting to SEK 793.9 m (666.5) and start-up costs,
e.g. the part of investments in new stores charged directly to the
income statement, of SEK 128.7 m (149.2). After depreciation but before
start-up costs, operating margin reached 16.0 per cent (12.1).

Group financial net interest income amounted to SEK 256.2 m (193.7).

Profit after financial items corresponded to SEK 5,224.7 m (3,378.0), an
increase of 55 per cent.

Group profit after comprehensive tax allocation for the nine months
period amounted to SEK 3,396.1 m (2,195.7), which corresponds to
earnings per share of SEK 4.10 (2.65).

Return on shareholders’ equity, revolving twelve months, was 33.4 per
cent (24.9) and return on capital employed, revolving twelve months, was
49.0 per cent (38.6).

Result for the third quarter

Gross margin for the third quarter was 54.0 per cent (51.3),
corresponding to a gross profit of SEK 5,838.2 m (4,789.5).

Operating profit was SEK 1,809.1 m (1,180.5), corresponding to an
operating margin of 16.7 per cent (12.6).

Profit after financial items for the third quarter was SEK 1,906.3 m
(1,246.5), an increase of 53 per cent.

Profit after comprehensive tax allocation for the third quarter amounted
to SEK 1,239.1 m (810.2), corresponding to a profit per share of SEK
1.50 (-.98).

Comments to the third quarter

Sales during the third quarter have been continued good and the H&M
Group has increased its
turnover in all countries of operation. The exceptionally warm weather
in the Nordic countries has had a somewhat restraining effect on
turnover towards the end of the quarter.

The improved gross margin, 54.0 per cent (51.3), compared with the
corresponding period last year, is primarily due to a lower level of
price reductions as a result of well balanced collections and improved
inventory control, but also to lower costs for handling goods. Increased
focus on delivery of new products to the stores every day has meant a
more even flow of goods. This in turn has lead to a more efficient
utilization of the logistic chain and a lower stock level and thereby a
higher turnover rate.

Also in this quarter, result and operating margin have strongly improved
in the new markets France, USA and Spain.

The Group has opened 12 stores during the period and closed four.

Financial position

Group balance sheet total increased by 24 per cent and corresponded to
SEK 22,612.2 m (18,184.2).

Group cash flow during the period was SEK 1,667.8 m (-598.0).

Financial assets amounted to SEK 9,910.3 m (5,236.2).

Stock-in-trade amounted to SEK 5,286.2 m (6,217.2), a decrease of 15 per
cent.

Investments in fixed assets amounted to SEK 914.5 m (1,174.7).

The equity/assets ratio corresponded to 75 per cent (75) and the share
of risk-bearing capital was 78 per cent (79).

Net worth, allocated to the 827,536,000 shares issued, corresponded on
31 August to SEK 20.54 (16.49).

Present quarter

During the fourth quarter a further 39 stores are planned to open and
four will be closed down. The largest number will open in Germany, where
nine stores are planned, and in the USA and Spain, where eight stores
are planned to open in each country. For the USA this means that a total
of 15 stores will be opened during the year.

Accounting principles

This interim report has been prepared in accordance with the
recommendation issued by the Swedish Financial Accounting Standard
Council regarding interim reporting (RR20). The new recommendations from
the Swedish Financial Accounting Standard Council, which have come into
force in 2002, have been observed but have not affected the report.
Otherwise, the same accounting principles have been used as in the
latest annual report.

This interim report has not been audited.

The report for the fiscal year 2001/02 will be published on 29 January
2003.
Report of the first three months of the fiscal year 2002/03 will be
published on 26 March 2003.
General Annual Meeting will be held on Monday, 28 April 2003, at 3.00
p.m. in “Victoriahallen”, Stockholmsmässan in Stockholm.

Stockholm 19 September 2002

The Board of Directors

Contact persons:
Rolf Eriksen, CEO +46 8 796 5233
Carl-Henric Enhörning, IR +46 8 796 5410
Leif Persson, CFO +46 8 796 1300
H&M switchboard +46 8 796 5500

Background information about H&M and press pictures may be found on
www.hm.com