Asianfin--H&M has abandoned its earnings margin target for 2024 due to rising discounts, escalating costs, and intense competition, which have adversely impacted its operating profit in the third quarter.

The retailer has faced challenges in enhancing profitability amidst high inflation, diminishing consumer demand, and stiff competition from its larger Spanish rival Zara, owned by Inditex, as well as from budget-friendly online fast-fashion retailer Shein. "Currently, we estimate that this year's operating margin will fall below 10%," stated Chief Executive Daniel Erver.

Additionally, H&M cited costs associated with the closure of its online fashion outlet, Afound, as detrimental to profits, alongside unfavorable currency fluctuations. The company also noted an increase in markdown costs over the quarter.