H&M shares tumble 7% on profit miss and scrapped margin target

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

The Swedish clothing retailer reported that operating profit for the group's fiscal third quarter came in at 3.51 billion Swedish crowns ($345.8 million), which compared to 4.74 billion Swedish crowns a year ago. Analysts surveyed by LSEG had forecast operating profit of 4.93 billion, Reuters reported.

"At present we estimate that this year's operating margin will be lower than 10 percent," Daniel Ervér, chief executive officer of H&M, said in a written statement.

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