Swedish fashion retailer H&M has reported stronger-than-expected profit growth for the third quarter, with operating earnings surging 40% to 4.9 billion Swedish kronor (€440 million). The company's net profit reached 3.2 billion kronor, up from 2.3 billion kronor in the same period last year, indicating that its strategic shift toward focusing on its core brand is beginning to yield results. The positive earnings surprise sent H&M's shares climbing 12% at market opening.

The profit improvement came despite a slight decline in revenue, which fell from 59 billion to 57 billion kronor. The company attributed the revenue contraction primarily to negative currency effects, with exchange rate movements accounting for approximately five percentage points of the decline. Additionally, H&M reduced its store count by 4% during the period. On a currency-adjusted basis, the retailer actually achieved a modest 2% sales increase, which management suggested was supported by enhanced marketing efforts.

Inventory management showed significant improvement, with available merchandise declining by 9%, pointing to more efficient supply chain operations. The company also reported that its autumn collection has been well-received by customers so far. For September, H&M anticipates currency-adjusted sales to be in line with the previous year's level, though it noted this comparison is against a particularly strong September 2022 when cold weather drove an 11% sales increase.

The positive results from H&M follow recent encouraging signals from the broader fashion retail sector. Earlier this month, Inditex, the Spanish parent company of rival Zara, reported a stronger-than-expected start to the autumn season. The Spanish retailer has consistently outperformed H&M in growth metrics in recent years, benefiting from its lean supply chain and faster fashion cycle. H&M's latest performance suggests the Swedish company may be closing the competitive gap through its renewed focus on brand strength and operational efficiency.

A Swedish court has convicted six individuals for their involvement in the murder of a 41-year-old gang leader in the Berga district of Linköping during the summer of 2024. The Linköping District Court delivered verdicts in the case, which involved eight defendants originally charged with participation in the killing. The court established that the murder was carried out according to a criminal plan orchestrated by members of an organized crime network based in the Berga area.

The victim was fatally shot in a public space near Berga Church in Linköping on August 13, 2024. Multiple gunshots struck the man in his back and head during the daylight incident, which occurred near residential buildings and a playground. Several members of the public witnessed the shooting, adding to the evidence presented during the trial.

Court proceedings revealed that a 14-year-old boy fired the fatal shots that killed the gang leader. The teenager, who has admitted to the killing, was not prosecuted due to being below the age of criminal responsibility under Swedish law. Instead, prosecutors focused on the eight older individuals allegedly involved in planning and facilitating the murder, all of whom had denied the charges against them.

Evidence presented by prosecutors included extensive documentation of movement patterns through surveillance footage, GPS data from electric scooters, and mobile phone analysis. The court determined the victim had been lured to the crime scene under the pretense of a drug transaction, with communication occurring through a special Snapchat account and a dedicated mobile phone later found buried in nearby woods. Six of the eight defendants were found guilty, with two receiving life sentences for murder while others were convicted of aiding the killing.