H&M Group’s pursuit of global fast-fashion supremacy is slipping further out of reach as the retailer warns that it will fall short of its annual profitability targets. Daniel Ervér, chief executive of the world’s second-largest listed fashion retailer, said the group had dropped its earnings margin target for the year because of higher marketing costs, weakening demand and “turbulence in the world around us”. He said: “External factors have impacted our sales revenue and purchasing costs more than we expected.
” Referring to the group’s 10 per cent forecast, he added: “At present we estimate that this year’s operating margin will be lower.” The Swedish group behind the H&M, Arket and Cos labels said that a chilly start to the summer had taken its toll in.
