H&M scrapped its margin target for 2024 as higher discounting, costs and fierce competition hurt operating profit in the third quarter, denting shares in the world's second-biggest listed fashion retailer.

H&M won’t hit a key profitability target this year but said sales momentum picked up through July and August before accelerating further in September.

Shares of H&M tumbled 7% on Thursday after the world's second-largest listed fashion retailer posted a miss on operating profit.

Shares of Swedish clothing retailer H&M plunged nearly 8% Thursday after the company reported a miss on operating profit for its fiscal third quarter and dropped its 2024 earnings margin target. CEO Daniel Ervér,

Hennes & Mauritz (OTCPK:HNNMY) expects a lower margin target for 2024 due to a combination of factors that have adversely affected its profitability. The company reported lower-than-expected operating profits for the June-August period,