Chief financial officer Leif Persson told analysts at last week's results conference that the retailer is confident prices will flatten by next year, as it gives prominence to more expensive products.
The Karl Lagerfeld collection is being rolled out to 500 stores by the end of the year.
H&M believes the abolition of Far Eastern textile quotas next year will enable it to source better product, while keeping prices the same.
Deutsche bank analysts noted: 'If prices do stabilise, this may be the moment when H&M is able to return to driving higher like-for-likes.'
Persson added that a simplified store format, tested in the US, is being rolled out across all European stores.
'It worked very well in the US,' he said. 'There are fewer articles in the store, making it easier for customers to shop.'
The design is being implemented in Belgium and will be rolled out this autumn.
The news follows a 14 per cent rise in sales, excluding VAT, in the third quarter to Skr12.8 billion (£976 million) and a like-for-like increase of 3 per cent. Profit after financial items rose 18 per cent to Skr2.5 billion (£190.6 million). H&M recorded its highest-ever gross margin of 55.9 per cent in the quarter.
The UK is close to becoming H&M's number two market after Germany, following a 16 per cent surge in sales, inclu-ding VAT, to SKR 1.3 billion (£99.1 million).
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