THREE-MONTH REPORT 1 December 2006 – 28 February 2007

• Sales for the H&M Group excluding VAT for the first three months of the financial year amounted to SEK 16,772 m (15,071), an increase of 11 per cent. In local currencies, the increase was 16 per cent and in comparable stores 5 per cent.

• Profit after financial items was SEK 3,411 m (2,680), an increase of 27 per cent. Group profit after tax was SEK 2,302 m (1,809), corresponding to SEK 2.78 (2.19) per share.

• Gross profit amounted to SEK 9,876 m (8,514), corresponding to a margin of 58.9 per cent (56.5).

• Operating profit amounted to SEK 3,223 m (2,574). The operating margin was 19.2 per cent (17.1).

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