Part of the explanation for the unexpected profit increase is that H&M now chooses to consolidate Sellpy, the platform for second-hand trading into the company. This gives a positive one-off effect of approximately SEK one billion to H&M's earnings.

Even without this measure, however, the result was better than expected. Analysts had on average expected a pre-tax loss of 1.36 billion crowns, according to Bloomberg's tally after the clothing giant grappled with a series of challenges in recent quarters, including a negative impact on the record-breaking US dollar as well as soaring cotton commodity prices.

The company also announces that it intends to open about 100 new stores in 2023 while closing 200 mainly in what it calls "established markets".