H&M tumbles on Q3 profit miss, dropped margin target
Updates shares, adds analysts comments, milestones
** Shares in H&M HMb.ST fall 6.8% after the Swedish fashion retailer abandoned its 2024 operating margin goal and posted lower than expected Q3 profits
** H&M says external factors impacted revenue and purchasing costs more than expected in the quarter, and posts rising costs of markdowns and marketing
** Its Q3 operating profit falls to 3.51 billion Swedish crowns ($346 million) vs 4.93 billion seen in an LSEG poll of analysts
** "Whilst this includes some one-offs, higher marketing spend was also a driver which should be extrapolated," J.P. Morgan says
** JPM adds the Q3 results could lead to FY 2024 EBIT downgrades of 3-4%
** "We expect the shares will react negatively given the significant earnings miss, albeit current trading is better than expected" - Citi
** H&M shares are among the bottom performers on the European benchmark STOXX 600 index .STOXX, wiping off their YTD gains
Reporting by Boleslaw Lasocki
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