STOCKHOLM ― H&M, the world's second-largest listed fashion retailer, said on Thursday it no longer expected to reach its full-year earnings margin goal, while reporting a lower-than-expected operating profit for the June-August period.H&M has struggled to boost its profitability amid high inflation and stiff competition from its bigger Spanish rival Zara, owned by Inditex, and the rapid growth of cut-price online fast-fashion retailer Shein.
2 percent, respectively, and H&M had cautioned in June that factors such as materials costs and foreign currency had made the 2024 target more difficult to reach.Operating profit for the Swedish group's fiscal third quarter stood at 3.51 billion Swedish crowns against a year-earlier 4.74 billion and a mean forecast in an LSEG poll of 4.93 billion.