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.

H&M has all but abandoned its profit target for the year as the Swedish fast-fashion chain struggles to boost margins amid higher material and marketing costs and intense competition from rivals such as Shein and Zara.