H&M Scraps Profit Target After Q3 Earnings Miss

Swedish retailer cites cold summer, high costs, and competition as key challenges to achieving its 10% operating margin goal.

H&M reported a third-quarter operating profit of 3.51 billion Swedish kronor, falling short of analyst expectations.
The company has abandoned its 10% operating margin target for 2024, with the year-to-date margin standing at 7.4%.
CEO Daniel Erver attributed the profit shortfall to a cold summer in Europe, high living costs, and increased competition from rivals like Shein and Inditex.
Despite the struggles, H&M's autumn collection has been well-received, with September sales expected to rise by 11% year-on-year.
The retailer is focusing on trendy clothing and celebrity endorsements to attract consumers, while also increasing marketing spend to boost brand appeal.