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H&M shares plunged as bad weather, costs and competition hit business.
The world’s second-biggest fashion retailer said profits fell 26 per cent to £258 million in the three months to September 30, and it would miss its annual profit margin target for this year.
Shares fell 4.6 percent in Stockholm and the profit margin stands at 7.6 percent so far this year, well short of the 10 percent target.
Stock hit: H&M has made a major marketing push at London Fashion Week with model Lila Moss (pictured)
Bosses blamed bad summer weather as sales fell 3 per cent to £4.18bn in the quarter.
The company, which has 4,298 stores, has faced fierce competition as Chinese giant Shein offers much cheaper prices, including £4 t-shirts.
Major fashion retailer Inditex, the Spanish giant behind Zara, has also put pressure on it.
And it has been hit by freight delays after the Red Sea shipping crisis earlier this year.
Chief Daniel Erver, who took over in January, said: “The cost of living for consumers remains high and we continue to see turbulence in the world.”
Erver suddenly replaced Helena Helmersson amid performance concerns. But yesterday H&M said the autumn ranges were “very well received”.
The update came on the heels of a major marketing push at London Fashion Week featuring singer Charli XCX and model Lila Moss.
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