STOCKHOLM, Sept 25, 2025 (BSS/AFP) - Swedish fashion giant H&M on Thursday reported a sharp rise in net profit in the third quarter but warned US tariffs were expected to bite later this year.

H&M said its net profit rose to 3.2 billion kronor ($340 million) for the June-to-August period, compared to 2.3 billion kronor a year earlier.

Operating profit rose to 4.9 billion kronor, up from 3.5 billion kronor in the third quarter of 2024, even with four percent fewer stores.

"Through a stronger customer offering, an improved gross margin and good cost control, we have strengthened operating profit compared with the same quarter last year," CEO Daniel Erver said in a comment.

Sales fell from 59 billion kronor to 57 billion kronor due to a stronger Swedish currency. They were were two percent in local currencies.

The company warned that that tariff costs were expected to have an "increased impact" in the fourth quarter.

President Donald Trump has imposed sweeping tariffs on US imports of goods from around the world since April.