H&M Abandons 2024 Earnings Margin Target, Q3 Profit Lags

People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
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H&M Abandons 2024 Earnings Margin Target, Q3 Profit Lags

People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko
People walk past a closed H&M clothing store in Omsk, Russia, March 3, 2022. REUTERS/Alexey Malgavko

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.

"At present we estimate that this year's operating margin will be lower than 10%," Chief Executive Daniel Erver said in a statement.

The accumulated margin stood 7.4% for the first three quarters.

The full-year operating margins for 2022 and 2023 were 3.2% and 6.2% 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.



Saudi 100 Brands Program Announces Winner of 'Saudi Heritage Revival’ Competition

The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission
The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission
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Saudi 100 Brands Program Announces Winner of 'Saudi Heritage Revival’ Competition

The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission
The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission

The "Saudi Heritage Revival" competition winner was announced Wednesday at the Creative Residence under the Fashion Commission FCR headquarters at JAX District, in the presence of the jury and competition participants.

The competition was launched in July by the Saudi 100 Brands Program -- an initiative of the Saudi Fashion Commission -- with the aim of encouraging sustainability within the field of fashion design and the Saudi fashion industry by highlighting the cultural and national heritage.

Specifically, it provided an opportunity for participants to submit unique fashion designs using a group of classic Swarovski crystals while integrating the features and elements of heritage and design art with Saudi culture.
The stages of the competition included allocating a virtual introductory meeting for participants about the objectives and requirements of the competition on August 26 and guidance workshops with Swarovski experts in Riyadh on September 2-4, in addition to individual virtual sessions to follow up on the work of participants. The participants' outputs were subject to arbitration by the jury, and the winner was chosen on September 25 at the Creative Residence under the Fashion Commission FCR headquarters. The winning designer receives a training opportunity at the headquarters of Dar Al-Hanouf Fashion in Jeddah, while the top five designers get to participate in an international academic competition by Swarovski called “Interpretation of the Swarovski SS 2025 Inspiration Theme Street Art in a Commercial Ready to Wear Outfit.”
The winner was Hebah Baatiyyah and the top five designers were Hebah Baatiyyah, Alanood Aljabeer, Lama AlHabashi, Rawan Alyami and Reem Bashawri.