Despite lackluster sales in the three months to Aug. 31, profits continued to rise as CEO Daniel Ervér's efficiency plan takes hold.

Global supply chain disruptions due to conflict in the Middle East, and logistics woes in Europe stymied third-quarter growth at H&M, where net sales remained broadly flat at 57.19 billion Swedish kronor, or 5.07 billion euros, while sales in local currencies rose 1 percent compared with the corresponding quarter last year.

The parent of brands including H&M, Cos, Arket and & Other Stories, said it was trading with 2 percent fewer stores during the three-month period ended Aug. 31, part of a wider strategy by chief executive officer Daniel Ervér to tighten operations and increase the Swedish retailer’s speed-to-market.

Despite the lackluster sales, profits continued to rise as Ervér’s efficiency plan takes hold. Operating profit in the period rose 23 percent to 6.04 billion kronor, or 535.3 million euros, while profit after tax was up 28 percent to 4.10 billion kronor, or 363.4 million euros.

Ervér said H&M’s work, “especially within purchasing, cost control and more efficient operations – has contributed to a more profitable business. Although sales developed in a positive direction during the quarter, we see further potential to increase sales going forward.”

He said the summer collections were “well received and contributed to better sales development, particularly towards the end of the quarter.

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