H&M misses 10% profitability target due to inflation, competition, and falling Q3 earnings.
H&M, the second-largest fashion retailer, has announced it will not meet its 10% profitability target for the year due to high inflation and fierce competition from rivals like Zara and Shein. The company's Q3 earnings fell 26% to 3.5 billion Swedish krona, with a 3% drop in sales. H&M's operating margin stands at 7.4% year-to-date, with a third-quarter margin of 5.9%. The firm cites rising costs and economic turbulence as key challenges.
September 26, 2024
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