Three-Month Report 1 December 2005 – 28 February 2006

• Group turnover excluding VAT amounted to SEK 15,071 M (12,610), an increase of 20 per cent. With comparable exchange rates, the increase was 14 per cent. Turnover including VAT was SEK 17,686 M (14,820).

• Profit after financial items amounted to SEK 2,680 M (2,309), an increase of 16 per cent. Group profit after estimated tax was SEK 1,809 M (1,501), corresponding to earnings per share of SEK 2.19 (1.81).

• Gross profit for the period amounted to SEK 8,514 M (7,167), which corresponded to a margin of 56.5 per cent (56.8 per cent).

• Operating profit amounted to SEK 2,574 M (2,204). Operating margin was 17.1 per cent (17.5).

• Greece to become new H&M market. Planned opening in Athens during spring 2007.

Contact persons:
Nils Vinge, IR +46 8 796 52 50
Leif Persson, CFO +46 8 796 13 00
Rolf Eriksen, CEO +46 8 796 52 33
Switchboard +46 8 796 55 00

For background information about H&M and press pictures please see www.hm.com.