Swedish fashion group H&M reported a bigger than expected rise in third-quarter profit on Thursday, and while its autumn collections were selling well, CEO Daniel Erver cautioned that U.S. tariffs may dampen consumer demand there.

Shares in the world's second-largest listed apparel retailer jumped 10% to hit their highest level in 11 months after operating profit for the June-August period increased by 40%.

Daniel Erver, CEO since January 2024, has been working to improve profitability by appealing to shoppers with trendier styles, aiming to compete with fast-fashion rivals Shein and Inditex's Zara as the sector contends with disruption from U.S. tariffs.

Erver has overhauled H&M's marketing, hiring pop stars like Charli XCX and Tyla for concerts and ad campaigns aimed at making its c

See Full Page