H&M Group saw a huge increase in operating profit in its third quarter, rising 40% to £388.77m for the three months to August 31, compared to £277.42m for the same period last year.

Net sales in local currencies were up 2%, but the stronger Swedish krona impacted recorded sales.

Overall, the fashion brand, which has stores in Gloucester and Cheltenham, reported £4.51 billion in sales for the quarter.

The group - which also owns COS, & Other Stories and Arket - said improved supply chain operations and favourable external cost factors offset some adverse currency effects.

The group also cut selling and administrative expenses by 5% to £1.99bn.

It said a 'sharper product mix' and faster stock turnaround reduced inventory by 9% year-on-year, easing markdowns and improving margins.

H&M reported that more than 30% of its sales are now online and it is working to enhance customer experience through tech investments and closer alignment between stores and digital channels.

The group operates 4,118 stores worldwide. During the first nine months of the year, it opened 36 new stores, including its first store in Brazil, and closed 171.